Smuckers Buys Folgers for $3.3 Billion

ORRVILLE, Ohio — The J.M. Smucker Co. and Procter & Gamble have agreed to merge the Folgers coffee business into the Smucker Co. as part of a $3.3 billion all-stock deal. With the addition of Folgers, the total size of the categories in which Smucker participates increases to approximately $15 billion, according to the companies. Folgers is the leading producer of retail packaged coffee products in the U.S. It will join a portfolio of brands that includes Jif, Crisco, Pillsbury and Hungry Jack. “Strategically, P&G has exited certain categories in order to focus on our core businesses and enhance the growth profile of the portfolio,” said A.G. Lafley, chairman of the board and chief executive officer of P&G, in a statement. The transaction is expected to close during the fourth quarter of 2008. “Folgers is a perfect strategic fit within our portfolio of leading and iconic North American food brands,” said Tim Smucker, chairman and co-chief executive officer of Smucker, in a statement. “We believe the many common values shared by our organizations represent a great foundation for a smooth integration.”

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