J.M. Smucker buying Big Heart Pet Brands for $3.2 billion

J. M. Smucker Co. is buying Meow Mix maker Big Heart Pet Brands in a $3.2-billion cash-and-stock deal, giving it a presence in the fast-growing pet food industry.

Big Heart Pet Brands, based in San Francisco, also owns brands such as Milk-Bone, Kibbles 'n Bits and Pup-Peroni.

Smucker, whose brands include Crisco and Folgers, values the deal at $5.8 billion when including debt.

Smucker will pay $1.3 billion in cash and issue 17.9 million shares of its common stock for the company.

Big Heart is owned by a group of investors, including several private investment firms.

Smucker expects the deal will add $2.4 billion to its fiscal 2016 revenue and add to its earnings.

Shares of Orrville, Ohio-based Smucker rose 3% in extended trading after closing regular trading at $105.88.

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