J.M. Smucker completes Folgers merger
November 06, 2008
by Eric Schroeder
ORRVILLE, OHIO — The J.M. Smucker Co. announced it has completed its merger with The Folgers Coffee Co., a subsidiary of The Procter & Gamble Co. Under terms of the all-stock transaction valued at $3 billion, Smucker will assume approximately $350 million of Folgers debt. Earlier, Smucker issued a one-time special dividend of $5 per share to Smucker shareholders before the purchase.
In connection with the merger, P.&G. said it has accepted 38,652,878 shares of P.&G. common stock for 63,166,532 shares of Folgers common stock. Based on a preliminary count by the exchange agent, a total of 484,864,100 shares of P.&G. common stock were validly tendered and not withdrawn prior to the expiration of the exchange offer, including 231,260,800 shares tendered pursuant to guaranteed delivery procedures. The total shares tendered includes an estimated 487,293 shares of P.&G. common stock tendered by odd-lot shareholders not subject to proration.
"We are very pleased with the completion of the Folgers transaction and believe that, as the No. 1 retail packaged coffee brand in the United States, Folgers clearly aligns with our strategy to own and market No. 1 food brands in North America," said Richard Smucker, executive chairman and co-chief executive officer.