Smucker to buy PE-owned Big Heart Pet Brands for about $5.8 bln

The J.M. Smucker Company has agreed to buy San Francisco-based Big Heart Pet Brands, a maker of pet snacks and products, for about $5.8 billion in cash and stock. The deal is expected to close by the end of Big Heart’s current fiscal year, which is on May 3, 2015.

Kohlberg Kravis Roberts & Co. LP, Vestar Capital Partners and Centerview Capital own Big Heart Pet Brands, which changed its name from Del Monte Corp following the divestiture of its consumer products business and namesake Del Monte brand in February 2014.

The three private equity firms first acquired and took private Del Monte Foods in March 2011.

According to terms of the transaction, Big Heart will receive 17.9 million shares of Smucker common stock and $1.3 billion in cash. Also, Smucker will refinance $2.6 billion of Big Heart’s debt.

Morgan Stanley & Co. and Centerview Partners served as financial advisors on the deal

Among Big Heart’s brands are Meow Mix, Milk-Bone, Kibbles ‘n Bits and 9Lives.

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