A deal in which JM Smucker Co. will acquire Folgers from Proctor & Gamble is percolating and expected to close this week, the Wall Street Journal reports. The all-stock purchase, which could ring in at $2 billion or more, means Smucker will nearly double in size and take over the leading spot in the coffee market.
Proctor & Gamble has been steadily selling off slow-growing food businesses to focus on companies in the health and beauty industries. In 2002, Smucker rocketed to No. 1 in the peanut butter and cooking oils markets when it picked up P&G’s Jif peanut butter and Crisco shortening brands. That all-stock deal was valued at almost $1 billion.