J.M. Smucker Company acquires Big Heart Pet Brands

J.M. Smucker Company acquires Big Heart Pet Brands

J.M. Smucker Company acquires Big Heart Pet Brands

J M. Smucker Company announced on Tuesday that it would buy  Big Heart Pet Brands for $ 5.8 billion, including debt.

 This deal will add brands like Kibbles ’n Bits, Milk-Bone and Meow Mix.

 CEO and great-grandson of J.M. Smucker, Richard K. Smucker, commented this move as one of the most transformational in the 118-year company history, biggest than acquisitioén of Folgers for 3.3 Billion five years ago.

 “It’s not uncommon at all for leaders in the industry to be in human food and pet food,” Mr. Smucker said. “Pet food is one of the fastest-growing areas in the center of the store.” added

 David J. West, CEO of Big Heart Pet Brands, try to focus on pet food industry with faster growth. In March 2013, the company sold it’s human food division to an Asian company Del Monte Pacific for $ 1.7 Billion.

 Both of executives said, both companies had similar cultures and a similar marketing proposition for their brands : tugging on customers’ heartstrings.

 “In my household, my dog gets better treatment than I get,” Mr. West said. “Our values and theirs, they really just sat right on top of one another.”

 Under the terms of the transaction, Smucker will give to Big Heart’s owners 18 million newly issued shares and $1.3 billion in cash. It will also assume $2.6 billion in debt.

 David J. West will become Smucker’s dicrector and will continue to lead the pet foods business.

 Morgan Stanley & Co. and Centerview Partners acted as financial advisors, and Simpson Thacher & Bartlett LLP acted as legal advisor to Big Heart Pet Brands.

 Smucker’s shares increased 3.3 percent to $ 109.35.

 Mr. Stakebay says:

 Acquiring Big Heart will add 2.2 Billion in sales and 200 Million in annual cost savings during first three years after close the transaction with anticipating 10 percent revenue growth in 2017 and 2018 fiscal years. After Mr. Smucker words this deal won’t last and he is open to another interesting acquisitions.

CEO of JM Smucker Company………..Richard K. Smucker…..2011-present……..$ 4 886 995 (2014)

President, CEO and Director of BHPB…..David J. West………..2011-present……. $ 3 287 172 (2014)


J.M. Smucker Company

Big Heart Pet Brands


$ 5.61 billion (2014)

$ 2.19 Billion  (2014)

Operating income

 $ 919 Million (2014)

$ 254.8 Million (2014)


$ 565.2 Million (2014)

 $ – 130.2 Million (2014)

Total assets

$ 9.072 billion (2014)

$ 5.363 Billion (2014)

Total Equity

$ 5.029 billion (2014)

$ 1.488.1 Billion (2014)


4775 (2014)

2750 (2014)

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