J.M. Smucker shareholders OK issuance of stock in merger with Folgers Coffee

By Lisa Kerner

Charlotte, N.C., Oct. 16 - J.M. Smucker Co. said its shareholders overwhelmingly approved a proposal to issue Smucker common shares in the merger of Folgers Coffee Co. with a Smucker subsidiary.

Also at the special meeting on Thursday, shareholders approved the adoption of amended articles of incorporation designed to provide all Smucker shareholders with equal voting rights upon the transaction's close.

The closing is subject to completion of a previously announced exchange offer by Procter & Gamble Co., a Smucker news release said.

In the exchange offer, Procter & Gamble shareholders have the option to exchange some, none or all of their shares for shares of Folgers common stock. Following the merger, each share of Folgers common stock will automatically convert into the right to receive one Smucker common share, it was previously reported.

The exchange offer is slated to end at midnight ET on Nov. 5.

On June 4, Procter & Gamble, a Cincinnati branded consumer goods company, said it would merge its Folgers coffee business into Smucker in an all-stock reverse Morris Trust transaction valued at about $3.3 billion, including $350 million of Folgers' debt.

Smucker manufactures fruit spreads, peanut butter, shortening and oils, ice cream toppings, sweetened condensed milk and health and natural foods beverages in North America. The company is based in Orrville, Ohio.

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