The J.M. Smucker Company announced they are purchasing Big Heart Pet Brands. Below are quotes from the press release announcing the purchase…
The J. M. Smucker Company (NYSE: SJM) (“Company”) today announced it has entered into a definitive agreement to acquire Big Heart Pet Brands in a cash and stock transaction valued at approximately $5.8 billion, which includes approximately $2.6 billion of net debt.
Big Heart Pet Brands is the largest stand-alone producer, distributor, and marketer of premium-quality, branded pet food and pet snacks in the United States. Its portfolio of brands includes Meow Mix®, Milk-Bone®, Kibbles ‘n Bits®, 9Lives®, Natural Balance®, Pup-Peroni®, Gravy Train®, Nature’s Recipe®, Canine Carry Outs®, and Milo’s Kitchen®. The Company estimates Big Heart Pet Brands’ net sales will be approximately $2.3 billion and adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”) will be approximately $450 million for Big Heart Pet Brands’ fiscal year ending May 3, 2015.
The acquisition provides the Company greater scale and strategic balance to its current portfolio while positioning it for continued growth. Strategic benefits are expected to include the following:
- Acquiring Big Heart Pet Brands will provide the Company with an immediate and significant presence in the $21 billion pet food and snacks category, one of the largest and fastest growing center-of-the-store categories in the United States.
Under the terms of the agreement, the Company will acquire all of the outstanding equity of Big Heart Pet Brands. The Company will issue approximately 17.9 million shares of its common stock to the shareholders of Big Heart Pet Brands’ holding company and pay $1.3 billion in cash, subject to adjustment for working capital and certain other amounts. The Company will also assume approximately $2.6 billion of net debt of Big Heart Pet Brands, which will be refinanced by the Company upon closing.
The transaction includes leased corporate facilities in San Francisco, California; Pittsburgh, Pennsylvania; and Burbank, California; and owned or leased manufacturing facilities in Decatur, Alabama; Topeka, Kansas; Lawrence, Kansas; Buffalo, New York; and Bloomsburg, Pennsylvania; as well as several research and development facilities, sales offices, and distribution centers.
To read the full press release, Click Here.
Wishing you and your pet(s) the best,
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