The J.M. Smucker Co. has entered into the $21 billion pet food and snacks segment with a definitive agreement to acquire Big Heart Pet Brands in a cash and stock transaction valued at approximately $5.8 billion.
Big Heart Pet Brands’ portfolio of brands includes Meow Mix, Milk-Bone, Kibbles ‘n Bits, 9 Lives, Milo’s Kitchen and other brands. The company changed its name from Del Monte following the sale of its fruits, vegetables and other consumer foods portfolio on Feb. 18, 2014.
Follow @SN_News for updates throughout the day.
"This combination further advances our strategy of owning leading food brands in attractive center-of-the-store categories,” said Smucker’s CEO Richard Smucker, in a statement. “The pet food business will become a third platform for growth for our company, along with our existing food and beverage businesses. This acquisition adds to the company's portfolio of leading brands and increases our consumer presence, while enabling us to capitalize on the growth of the pet food and snacks category.”
Smucker's anticipates annual synergies of approximately $200 million within the first three full years of ownership, with approximately $40 million to $50 million of the synergies expected to be realized in fiscal 2016. The transaction is expected to close by the end of the Smucker’s current fiscal year, which ends on April 30, 2015, subject to customary closing conditions including receipt of required regulatory approvals.
|Suggested Categories||More from Supermarket News|