(Reuters) – J M Smucker, the maker of Folgers coffee, said it would buy pet food maker Big Heart Pet Brands, known for brands such as Meow Mix and Milk-Bone, for $3.2 billion to enter the pet food market.
Smucker said it would offer about 17.9 million shares to Big Heart’s shareholders and pay $1.3 billion in cash.
Big Heart, formerly Del Monte Corp, changed its name following the sale of its fruit, vegetable, and other consumer foods business in February last year.
Smucker (SJM) said it would assume about $2.6 billion of net debt of Big Heart, bringing the total deal value to about $5.8 billion.
Smucker said it expects to incur about $225 million in one-time costs related to the transaction. The transaction is expected to close by April.