April 4, 2018 / 8:21 PM / 4 months ago

BRIEF-J. M. Smucker To Acquire Ainsworth Pet Nutrition Llc

April 4 (Reuters) - J M Smucker Co:

* THE J. M. SMUCKER COMPANY TO ACQUIRE AINSWORTH PET NUTRITION, LLC, MAKER OF RACHAEL RAY™ NUTRISH® PET FOOD; COMPANY TO EXPLORE STRATEGIC OPTIONS FOR U.S. BAKING BUSINESS

* TRANSACTION VALUED AT APPROXIMATELY $1.7 BILLION, AFTER AN ESTIMATED TAX BENEFIT OF $200 MILLION

* ANNUAL COST SYNERGIES OF $55 MILLION EXPECTED WITHIN FIRST THREE YEARS AFTER ACQUISITION

* WILL EXPLORE STRATEGIC OPTIONS FOR ITS U.S. BAKING BUSINESS, INCLUDING A POTENTIAL SALE

* COMPANY ANTICIPATES ACQUIRED BUSINESS TO CONTRIBUTE NET SALES OF ABOUT $800 MILLION IN FIRST FULL YEAR AFTER CLOSING TRANSACTION

* STRATEGIC REVIEW OF U.S. BAKING BUSINESS EXPECTED TO BE COMPLETED BY END OF Q1 OF CO’S FISCAL 2019

* POST EFFECT OF FIRST YEAR OF SYNERGIES, EXPECTS ACQUIRED BUSINESS TO CONTRIBUTE ABOUT $0.25 OF ACCRETION TO CO’S ADJUSTED EARNINGS PER SHARE

* DEAL IS AN ALL-CASH TRANSACTION, WHICH CO WILL FUND WITH DEBT

* COMPANY EXPECTS TO INCUR APPROXIMATELY $50 MLN IN ONE-TIME COSTS RELATED TO ACQUISITION Source text for Eikon: Further company coverage:

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