Why Shares of J.M. Smucker Company Surged On Wednesday

Shares of J.M. Smucker Company SJM were trading higher by more than six percent on Wednesday after the company announced Tuesday evening it plans to acquire Big Heart Pet Brands from its private equity owners for 17.9 million shares, $1.3 billion in cash, and $2.6 billion in debt that will be refinanced for a total consideration of $5.8 billion. Big Heart owns several well-known pet food brands including Meow Mix, Milk-Bone, Kibbles ‘n Bits, 9Lives, Natural Balance, Pup-Peroni, Gravy Train, Natures Recipe, Canine Carry Outs, Milos Kitchen and other brand names. Dave West, President and Chief Executive Officer of Big Heart Pet Brands commented in a press release that J.M. Smucker will "provide the resources and scale to help our brands continue to grow and flourish." West will assume the title as President of Smuckers new pet food business. The transaction is expected to close before May 3, 2015.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsBig Heart Pet BrandsDave WestGravy TrainJ M SmuckerMeow Mix
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!