It appears that J.M. Smucker is starting their expansion into the area of all kinds of tasty dog treats and meaty puddings for kittens as the company has announced on Tuesday that it will acquire Big Heart Pet Brands, a known pet food company (others might remember this brand under the name Del Monte), as the pet business industry continues to grow. They are purchasing BHPB from its private equity owners and the reported amount is $5.8 billion.
No more peanut butter and jellies alone for Smuckers, as the company sees potential in continued growth through the pet industry. This will be Smucker’s biggest deal ever and will expand their brand portfolio with such names like Milk Bone and Kibbles. It’s improtant to remember that a lot of other famous food companies like Mars have already acquired or created subdivisions of pet food, which labels this move as a smart one.
“It’s not uncommon at all for leaders in the industry to be in human food and pet food. Pet food is one of the fastest-growing areas in the center of the store,” said Richard K. Smucker, the company’s chief executive and a great-grandson of J.M. Smucker himself as reported by New York Times.
“We’re very confident that we’re funding this the right way,” he added.
Analysts predict this as a good move, and portfolio investors appear to be very happy about the decision to expand company’s horizons. It’s been reported that shares in Smucker rose 3.3 percent in after-hours trading, to $109.35.