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J M Smucker to buy Milk-Bone owner Big Heart Pet Brands


    (Reuters) - J M Smucker Co , 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.

    San Francisco-based Big Heart is jointly owned by private equity firms Kohlberg Kravis Roberts & Co LP, Vestar Capital Partners, Centerview Capital and AlpInvest Partners Inc.

    Smucker 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.

    (Reporting by Amrutha Gayathri in Bengaluru; Editing by Saumyadeb Chakrabarty)