Smucker Buying Folgers Coffee …
Source: http://blogs.moneyandmarkets.com/blog/the-dividend-superstars-blog/0/0/smucker-buying-folgers-coffee-Posted on Wednesday, June 4th, 2008 | In Current Market News, Stocks to Watch
Recently, I’ve been highlighting a number of consumer staples deals, including the Wrigley (WWY) purchase and takeover rumors surrounding Anheuser-Busch (BUD).Today, we got yet another M&A announcement … this time from Smucker (SJM). The company will be buying the Folgers coffee business from Procter & Gamble (PG) in a transaction worth about $3 billion. PG shareholders will end up with a significant stake in SJM. In addition, before the transaction is completed, SJM will send out a $5-per-share special dividend to its investors. I expect to see more deal activity in this space. The big players are looking for growth and economies of scale by snapping up smaller players and individual product lines.Meanwhile, income investors who own these stable, profitable businesses are happily collecting dividend checks year in and year out.
Last 5 posts by Nilus Mattive
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 About Nilus Mattive (http://blogs.moneyandmarkets.com/blog/the-dividend-superstars-blog)
Nilus Mattive, a financial analyst at Weiss Research, is the editor of Dividend Superstars, a monthly publication and is also the editor of the company’s daily e-letter, Money and Markets. Formerly a senior editor of Standard & Poor’s The Outlook, the oldest continuously published investment newsletter in the country, he has written for a number of investment websites, including BusinessWeek and Individual Investor. Mr. Mattive is the author of The Standard & Poor’s Guide for the New Investor (McGraw-Hill, 2004) and has appeared on the popular investment radio show, Traders Nation, to discuss his views on personal finance. Mr. Mattive graduated cum laude from the University of Scranton. |
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