Smucker Shareholders OK Jif Deal
Apr. 05, 2002
WOOSTER, Ohio (AP) _ Shareholders of The J.M. Smucker Co. on Friday approved the acquisition of the Jif peanut butter and Crisco cooking oil brands of Procter & Gamble Co.
The company said about 85 percent of potential votes were cast in favor. A two-thirds approval vote was required.
Smucker, based in Orrville, was founded in 1897 and has over 2,000 employees. It makes and sells fruit spreads, ice cream toppings, health and natural foods, beverages and peanut butter.
The deal was announced in October. It was cleared by federal regulators. Because the deal would have certain tax benefits for P&G, it is still contingent on an Internal Revenue Service evaluation.
Once the deal closes, Smucker effectively will issue all new shares, said Steven J. Ellcessor, the company's vice president of finance and administration. It has 24.5 million shares outstanding now. After the transaction, that number will increase to about 49.5 million.
P&G shareholders get a new Smucker share for about each 50 P&G shares. They don't relinquish those shares. The Smucker share is in addition.
Ellcessor said the value of the deal will depend on the value of the new shares when the deal closes, but at Friday's closing it was worth about $850 million.
Smucker shares fell 6 cents to $33.83 in trading Friday on th New York Stock Exchange, while Procter shares lost 18 cents to $89.80.
He said when the deal closes, P&G will put Jif and Crisco assets into a wholly owned subsidiary and spin it off to Smucker, which anticipates closing the transaction before June 30.
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