The J. M. Smucker Company Acquires Majority of Sara Lee Corporation's North American Foodservice Coffee Business
01/03/2012 - The J. M. Smucker Company (NYSE: SJM) today announced that it has completed the acquisition of a majority of the North American foodservice coffee and hot beverage business of Sara Lee Corporation ("Sara Lee") in an all cash transaction. The Company previously announced the agreement with Sara Lee on October 24, 2011.
The acquisition includes Sara Lee's market-leading liquid coffee concentrate business sold under the licensed Douwe Egberts® brand, along with a variety of roast and ground coffee, cappuccino, tea, and cocoa products, sold through foodservice channels in North America. In addition, the companies entered into a long-term innovation partnership to collaborate on liquid coffee technology for the foodservice market.
"We are pleased to complete this transaction which adds the market-leading liquid coffee concentrate business to the Smucker portfolio," said Richard Smucker, Chief Executive Officer. "The transaction further strengthens our position as a leading North American coffee company, provides new coffee technologies, and adds significant scale to our foodservice business. We are excited to welcome the nearly 475 new employees into the Smucker family."
In a separate statement, Jan Bennink, Executive Chairman of the Board for Sara Lee Corp. said, “The sale of a major part of our North American coffee business to Smucker is the latest example of CoffeeCo’s focus on creating the strongest possible pure-play company. We look forward to working with Smucker and to the promising future of our new independent coffee and tea company."
When announced in October, the deal was set for $350 million.
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