J. M. Smucker Completes Acquisition of Big Heart Pet Brands
The J. M. Smucker Company has completed the acquisition of Big Heart Pet Brands in a cash and stock transaction valued at approximately $6.0 billion, which includes the assumption of approximately $2.5 billion of net debt that was paid off by the company at closing. The company previously announced the signing of a definitive agreement to acquire Big Heart Pet Brands on February 3, 2015.
Big Heart Pet Brands, with nearly 2,500 employees, is a producer, distributor, and marketer of premium-quality, branded pet food and pet snacks in the United States. Its portfolio of brands includes Meow Mix, Milk-Bone, Kibbles 'n Bits, 9Lives, Natural Balance, Pup-Peroni, Gravy Train, Nature's Recipe, Canine Carry Outs, and Milo's Kitchen.
In connection with the closing of the transaction, Dave West, who served as the President and Chief Executive Officer of Big Heart Pet Brands, has joined the company as an executive officer, assuming the role of President, Big Heart Pet Food and Snacks. West has also been appointed to the company's Board of Directors.
"We are excited to have completed this transaction, which provides the company an immediate and significant presence in the large and growing pet food and snacks category," says Richard Smucker, chief executive officer. "Big Heart Pet Brands markets some of America's best known pet brands and, with a broad product portfolio that includes the leading position in dog snacks, this acquisition is a great strategic fit. Adding a third platform for growth, along with our existing food and beverage businesses, the transaction increases our center-of-the-store presence with consumers and retailers, while further enhancing shareholder value. We are pleased to welcome the employees of Big Heart Pet Brands into the Smucker family and look forward to working with this talented team to grow the business together."
The company funded the non-equity portion of the acquisition through the combination of a $1.75 billion bank term loan and $3.65 billion of long-term bonds. Proceeds of the new borrowings were also used to pay off the company's $1.1 billion of private placement notes.
Big Heart Pet Brands, with nearly 2,500 employees, is a producer, distributor, and marketer of premium-quality, branded pet food and pet snacks in the United States. Its portfolio of brands includes Meow Mix, Milk-Bone, Kibbles 'n Bits, 9Lives, Natural Balance, Pup-Peroni, Gravy Train, Nature's Recipe, Canine Carry Outs, and Milo's Kitchen.
In connection with the closing of the transaction, Dave West, who served as the President and Chief Executive Officer of Big Heart Pet Brands, has joined the company as an executive officer, assuming the role of President, Big Heart Pet Food and Snacks. West has also been appointed to the company's Board of Directors.
"We are excited to have completed this transaction, which provides the company an immediate and significant presence in the large and growing pet food and snacks category," says Richard Smucker, chief executive officer. "Big Heart Pet Brands markets some of America's best known pet brands and, with a broad product portfolio that includes the leading position in dog snacks, this acquisition is a great strategic fit. Adding a third platform for growth, along with our existing food and beverage businesses, the transaction increases our center-of-the-store presence with consumers and retailers, while further enhancing shareholder value. We are pleased to welcome the employees of Big Heart Pet Brands into the Smucker family and look forward to working with this talented team to grow the business together."
The company funded the non-equity portion of the acquisition through the combination of a $1.75 billion bank term loan and $3.65 billion of long-term bonds. Proceeds of the new borrowings were also used to pay off the company's $1.1 billion of private placement notes.