Folgers-Smucker deal completed
Business Courier of Cincinnati
Procter & Gamble Co. on Thursday completed its roughly $3 billion sale of its Folgers coffee business to the J.M. Smucker Co.
Shareholders of Smucker approved the deal Oct. 17. Under the agreement, shareholders of P&G (NYSE: PG) had the option to exchange their P&G shares for those of Folgers, which were then converted into Smucker shares. P&G said it accepted almost 38.7 million shares of P&G common stock for 63.2 million shares of Folgers common stock.
Smucker, the maker of jams, jellies and ice cream toppings, also paid a special $5 dividend to its shareholders in late September.
The merger agreement, announced in June, gives Orrville, Ohio-based Smucker (NYSE: JMS) one more P&G brand, following its acquisition of Jif and Crisco oil, the latter of which still operates in Cincinnati.
The Courier reported Oct. 31 that Smucker plans to keep several of Folgers functions, such as product development, in Cincinnati. But others, including the marketing group, will move to Orrville. The company is still making decisions about many of the departments. Meanwhile, it is in the process of acquiring the Clock Tower at Ivorydale, where its local Crisco operations are based.
Shares of P&G rose 39 cents in early afternoon trading, to $64.20.
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