PE-backed Big Heart Pet Brands Agrees to $5.8B Sale
February 04, 2015
Big Heart Pet Brands, backed by KKR and several other PE investors, has agreed to be acquired by The J.M. Smucker Company (NYSE: SJM) in a cash and stock transaction valued at approximately $5.8 billion. Expected to close by April 30, the deal includes $2.6 billion of assumed net debt. Bank of America has committed to provide financing.
Big Heart Pet Brands is the largest stand-alone producer, distributor and marketer of premium-quality, branded pet food and pet snacks in the U.S., boasting brands such as Meow Mix, Milk-Bone and Kibbles 'n Bits. Formerly named Del Monte, the company is projected to record net sales and adjusted EBITDA of $2.3 billion and $450 million, respectively, for the FY ending May 3. Some of its other PE backers include Vestar Capital Partners, Centerview Capital and AlpInvest Partners.