J.M. Smucker Co. Sees Sales Increase After Acquisition of Big Heart Pet Brands

The J.M. Smucker Company experienced a 47% increase in sales after their acquisition of Big Heart Pet Brands. Sales increased by $628.2 million USD for a total of $1.95 billion USD in sales. Diluted net income per common share remained at $1.14 USD and stock increased by $8 USD per share.

The purchase enabled Smuckers to enter the pet-food market. Brands included in the acquisition were Meow Mix, Milk-Bone, Kibbles 'n Bits, 9Lives, Natural Balance, Pup-Peroni, Gravy Train, Nature's Recipe, Canine Carry Outs and Milo's Kitchen.

Smucker’s Chief Executive, Richard Smucker said, “We are off to a solid start this fiscal year. Contributions from the Big Heart acquisition and new products were key drivers of this performance. Overall, we are on track to achieve our full year expectations for net sales and earnings, and are confident about the initiatives we have in place to support future growth.”

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Smucker enters pet food business with acquisition of Big Heart Pet Brands

Big Heart Pet Brands announced earlier this month that it has entered into a definitive agreement to be acquired by The J.M. Smucker Company in a cash and stock transaction valued at approximately $5.8 billion. The transaction is expected to close by the end of the Big Heart Pet Brands' current fiscal year, which ends on May 3, 2015. 

"We are pleased to join the Smucker Company and their family of iconic brands," said Dave West, president and CEO of Big Heart Pet Brands. "Given the strong alignment between Big Heart Pet Brands' and Smucker's purposes and values, I'm confident that Smuckers is a great fit for our brand portfolio. Our sponsor owners have been great partners as we invested in growing our business and capabilities to drive value creation, and our iconic pet food and snack brands have significant growth potential. Smucker will provide these resources and scale to help our brands continue to grow and flourish." 

Under the terms of agreement, Big Heart Pet Brands' shareholders will receive 17.9 million shares of Smucker common stock and $1.3 billion in cash. Smucker will also refinance $2.6 billion of Big Heart Pet Brands' debt. Upon close of the transaction, Dave West will serve as president of Smucker's new pet food business. 

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