Smuckers is like a sleeping giant. The J.M. Smucker Co. has won federal clearance to purchase the Folgers coffee business from Procter & Gamble Co., in a $3 billion tax-free stock deal. Folgers is the leading producer of retail packaged coffee products in the United States. This brand joins a widely recognized portfolio of brands that include Smucker's, Jif and Crisco (former P&G brands acquired by Smuckers in 2002), Pillsbury, Eagle Brand, Hungry Jack, Robin Hood and Bick's.

As part of the transaction, Smucker will issue a one-time special dividend of $5 per share to Smucker shareholders. Following this one-time special dividend, P&G shareholders will receive approximately 53.5 percent of Smucker in a tax-free stock-for-stock merger.

The deal was announced in June and is expected to be complete by the end of 2008. My only question is, "Are we going to see coffee flavored jam soon?"
Source: MSN Money

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