Big Heart Pet Brands announced earlier this month that it has entered into a definitive agreement to be acquired by The J.M. Smucker Company in a cash and stock transaction valued at approximately $5.8 billion. The transaction is expected to close by the end of the Big Heart Pet Brands' current fiscal year, which ends on May 3, 2015.
"We are pleased to join the Smucker Company and their family of iconic brands," said Dave West, president and CEO of Big Heart Pet Brands. "Given the strong alignment between Big Heart Pet Brands' and Smucker's purposes and values, I'm confident that Smuckers is a great fit for our brand portfolio. Our sponsor owners have been great partners as we invested in growing our business and capabilities to drive value creation, and our iconic pet food and snack brands have significant growth potential. Smucker will provide these resources and scale to help our brands continue to grow and flourish."
Under the terms of agreement, Big Heart Pet Brands' shareholders will receive 17.9 million shares of Smucker common stock and $1.3 billion in cash. Smucker will also refinance $2.6 billion of Big Heart Pet Brands' debt. Upon close of the transaction, Dave West will serve as president of Smucker's new pet food business.
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