Posted on June 4, 2008 at 8:56 AM
Filed under: Acquisitions
Tagged: Folgers , J.M. Smucker , Procter & Gamble , Tim Smucker

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Procter & Gamble Co. is selling its Folgers coffee unit -- after having considered a spinoff -- to Orrville, Ohio-based J.M. Smucker Co. in an all-stock reverse Morris Trust transaction valued at about $3.3 billion, including the assumption of an estimated $350 million of Folgers debt. Folgers joins a portfolio of brands that include Smucker's, Jif, Crisco, Pillsbury and more. The deal will double the size of Smucker, creating a company with annual sales approaching $5 billion. Tim Smucker, chairman and co-CEO of Smucker, noted that Folgers will become the firm's 10th No. 1 brand in North America. Reuters notes P&G has long been expected to separate the coffee business in order to focus on faster-growing categories like health and beauty.

The deal is expected to close in the fourth quarter. More to come from TheDeal.com and here on CD.
- Baz Hiralal

See to the Folgers-Smucker deal announcement
P&G, Smucker in $3B Folgers deal

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