P&G finalizes $1 billion stock deal transferring Jif and Crisco to Smucker
Sunday, June 2nd 2002, 12:00 am
By: News On 6
CINCINNATI (AP) _ Procter & Gamble Co. finalized a $1 billion stock deal Saturday that transferred its Jif peanut butter and Crisco cooking products lines to J.M. Smucker Co.
Steven Ellcessor, the vice president of finance and administration for Smucker, said it had been interested in acquiring Jif for 20 to 25 years.
``We are always interested in developing and acquiring brands that are leaders in their category,'' Ellcessor said Saturday.
Procter officials didn't return calls seeking comment Saturday.
Under the deal announced by the companies in October, P&G shareholders will receive one share of new Smucker common stock for every 50 P&G shares they own by the close of business on Wednesday. P&G shareholders with fewer than 50 shares will receive a cash payment in lieu of fractional shares.
Smucker shareholders are to receive .9451 of a share of new Smucker common stock for every Smucker share they held at the end of trading Friday.
P&G also agreed to sell off its Jif and Crisco plants in Lexington, Ky., and Cincinnati. Smucker will take on about 400 new employees, which represent most employees of the new plants, the company said.
Smucker, which is based in Orrville, Ohio, has said the deal eventually will almost triple its annual earnings and double annual sales to $1.3 billion.
P&G markets more than 250 brands including Pampers diapers, Tide detergent, Pantene shampoo, Bounty paper towels and Crest toothpaste.