Big Heart Pet Brands to be Acquired by The J.M. Smucker Company
(SAN FRANCISCO) February 3, 2015 – Big Heart Pet Brands today announced that it has entered into a definitive agreement to be acquired by The J.M. Smucker Company (“Smucker”) (NYSE: SJM), in a cash and stock transaction valued at approximately $5.8 billion. The transaction is expected to close by the end of Big Heart Pet Brands’ current fiscal year, which ends on May 3, 2015, subject to customary closing conditions including receipt of required regulatory approvals.
“We are pleased to join the Smucker Company and their family of iconic brands,” said Dave West, President and Chief Executive Officer of Big Heart Pet Brands. “Given the strong alignment between Big Heart Pet Brands’ and Smucker’s purposes and values, I’m confident that Smucker is a great fit for our brand portfolio. Our sponsor owners have been great partners as we invested in growing our business and capabilities to drive value creation, and our iconic pet food and snack brands have significant growth potential. Smucker will provide the resources and scale to help our brands continue to grow and flourish.”
Big Heart Pet Brands is headquartered in San Francisco, California and is currently owned by a consortium of investors led by funds affiliated with Kohlberg Kravis Roberts & Co. L.P. (“KKR”), Vestar Capital Partners (“Vestar”) and Centerview Capital (“Centerview”).
Big Heart Pet Brands changed its name from Del Monte Corporation following the divestiture of its Consumer Products business and namesake Del Monte brand on February 18, 2014. On March 8, 2011, Del Monte Foods was acquired and taken private by KKR, Vestar and Centerview.
"The teamwork between our private equity partners and the Big Heart Pet Brands management team has grown and strengthened Big Heart Pet Brands’ leadership in the dynamic pet food category," said a senior executive group from KKR, Vestar and Centerview. "Innovation and exciting new products, combined with enhanced support of its flagship brands, has positioned Big Heart Pet Brands for additional success. We owe a depth of gratitude to Dave West and the entire Big Heart Pet Brands team, who have built a best-in-class pet food and snacks company. We're confident that Big Heart Pet Brands can look ahead to continued success in the sector as part of the Smucker family. We look forward to benefiting from this synergistic combination as a meaningful shareholder in Smucker going forward."
Transaction Details
Under the terms of the agreement, Big Heart Pet Brands’ shareholders will receive 17.9 million shares of Smucker common stock and $1.3 billion in cash. Smucker will also refinance $2.6 billion of Big Heart Pet Brands’ debt.
Upon close of the transaction, Dave West will serve as president of Smucker’s new pet food business.
Smucker is a leading marketer and manufacturer of fruit spreads, retail packaged coffee, peanut butter, shortening and oils, ice cream toppings, sweetened condensed milk, and natural foods products in North America. Its family of brands includes Smucker's,® Folgers,® Dunkin' Donuts,® Jif, ® Crisco,® Pillsbury,® Eagle Brand,® R.W. Knudsen Family,® Hungry Jack,® Millstone,® Cafe Bustelo,® Café Pilon,® truRoots,® White Lily,® Martha White,® and Sahale Snacks® in the United States, along with Robin Hood,® Five Roses,® Carnation,® and Bick's® in Canada.
Advisors
Morgan Stanley & Co. and Centerview Partners acted as financial advisors, and Simpson Thacher & Bartlett LLP acted as legal advisor to Big Heart Pet Brands.
ICON to Acquire MediMedia Pharma Solutions
DUBLIN--(BUSINESS WIRE)-- ICON plc (NASDAQ:ICLR), a global provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries, today announced it has agreed, subject to certain customary closing conditions, to acquire MediMedia Pharma Solutions for a cash consideration of$120 million. MediMedia Pharma Solutions is division of MediMedia USA and is owned by Vestar Capital Partners.
The acquisition strengthens ICON's expertise in scientific communications and market access and, together with ICON's existing Commercialisation and Outcomes practices, creates the industry's leading integrated scientific communications and market access solution.
Headquartered in Yardley, Pennsylvania, MediMedia Pharma Solutions includes MediMedia Managed Markets and Complete Healthcare Communications. MediMedia Managed Markets is a leading provider of strategic payer-validated market access solutions. Complete Healthcare Communications is one of the leading medical and scientific communication agencies working with medical affairs, commercial and brand development teams within life science companies. MediMedia Pharma Solutions has supported hundreds of development launches and in-market products, spanning over 40 therapeutic classes.
Commenting on the acquisition, Ciaran Murray, ICON CEO, said: "The need to demonstrate and communicate the value of new medicines is an important global healthcare trend. Through ICON's market leading commercialisation and outcomes group we are supporting our customers to maximise the value of their new drugs. Our acquisition of MediMedia Pharma Solutions deepens the expertise of this group and brings us outstanding scientific and medical communications capabilities."
Tim Search, President of MediMedia Pharma Solutions, commented, "The combination of the commercial, scientific, and market access expertise of MediMedia Pharma Solutions and ICON creates an unparalleled offering that can inform product investment decisions and establish and communicate product value. With the shift to evidence-based medicine and value-based pricing, we are excited about the expanded expertise and capabilities our relationship with ICON brings to our combined customers."
About ICON plc
ICON plc is a global provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries. The Company specialises in the strategic development, management and analysis of programs that support clinical development - from compound selection to Phase I-IV clinical studies. ICON currently has 10,600 employees, operating from 83 locations in 38 countries.
Further information is available at www.iconplc.com