The J.M. Smucker
Company announced Tuesday that it would merge
with the Folgers
coffee subset of The Proctor & Gamble Company. This deal, amounting to almost $3.3 billion, is an attempt to create the largest company providing favorite North American delicacies. Offering peanut butter
, jelly, cookies
, ice cream toppings and more before the transaction, the addition of coffee to the mix tops off Smucker’s list of All-American guilty pleasures quite nicely. Not only can Americans wake up with Folgers, but now they can spend all day with other products offered in the new family. More than just a matter of pleasing customers, Smucker is hoping to strike a chord with their shareholders as well, predicting phenomenal sales and growth post-acquisition. To prove their confidence in the deal, all shareholders as of the date of record
will be provided with a $5 dividend per share. Despite all of the predictions and votes of confidence from executives, time will tell if the company can truly prosper in a period of economic strain and food crises.
Source: Yahoo! Finance