J.M. Smucker to acquire Eagle Family Foods Holdings
April 02, 2007
by FoodBusinessNews.net Staff
ORRVILLE, OHIO — The J.M. Smucker Co. announced its intention to acquire Eagle Family Foods Holdings Inc. for about $133 million as well as the assumption of $115 million in debt.
Eagle, based in Columbus, Ohio, is the largest producer of sweetened condensed and evaporated milk in the U.S. and Canada. The company generated $206 million in sales during fiscal year 2006. In addition to the Eagle brand, the company also markets other brands including Magnolia sweetened condensed milk, None Such mincemeat, Borden eggnog and Kava acid-neutralized coffee.
The acquisition of Eagle is intended to help further the company’s efforts in growing the Latino market. J.M. Smucker will move Eagle’s headquarters to Orrville, Ohio by the end of fiscal year 2008. The move is expected to generate a savings of about $9 million.
"We are pleased to acquire Eagle and expand our position in the baking aisle," said Tim Smucker, chairman and co-chief executive officer. "Acquisitions are an important part of our growth strategy — to own and market leading North American food brands sold in the center of the store — and Eagle complements that strategy."