NEW YORK Following a recent acquisition of rival spreads maker Knott’s Berry Farm a few weeks ago, J.M. Smucker Co. today announced plans to buy Procter & Gamble’s Folgers coffee business for about $3 billion.
In addition to the buyout, the companies said that Smucker will take on Folgers debt, a sum of around $350 million.
“Coffee is the perfect complement to breakfast or dessert—two areas we know a lot about,” president and co-chief executive Richard Smucker said in a statement released earlier.
Smucker said it will also issue special dividend of $5 per share to existing shareholders.
Smucker shares climbed 2.1 percent in late-morning trading and Proctor & Gamble shares went up 1 percent.