Branded food products maker J.M. Smucker Co (SJM) on Monday said it has completed the acquisition of Big Heart Pet Brands in a cash and stock deal valued at about $6 billion, including the assumption of about $2.5 billion of net debt that was paid off by the company at closing.
In connection with the closing of the deal, Dave West, who served as the president and CEO of Big Heart Pet Brands, has joined Smucker 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," said Richard Smucker, CEO of Smucker. "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."
Smucker funded the non-equity portion of the deal 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.
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