JM Smucker buys SF based Big Heart Pet Brands for $3.2 billion
ORRVILLE, Ohio (AP) — J. M. Smucker Co. is buying Meow Mix maker Big Heart Pet Brands in a $3.2 billion cash-and-stock deal, giving it a presence in the fast-growing pet food industry.
Big Heart Pet Brands, based in San Francisco, also owns brands such as Milk-Bone, Kibbles 'n Bits and Pup-Peroni.
Smucker, whose brands include Crisco, Jif and Folgers as well as Smucker's jams and jellies, values the deal at $5.8 billion when including debt.
Smucker will pay $1.3 billion in cash and issue 17.9 million shares of its common stock for the company.
Big Heart is currently owned by a group of investors, including several private investment firms.
Smucker expects the deal will add $2.4 billion to its fiscal 2016 revenue and add to its earnings.
Shares of Orrville, Ohio-based Smucker rose 3.9 percent to $110 in extended trading Tuesday.