Advertisement
Canada markets closed

  • S&P/TSX

    21,969.24
    +83.86 (+0.38%)
     

  • S&P 500

    5,099.96
    +51.54 (+1.02%)
     

  • DOW

    38,239.66
    +153.86 (+0.40%)
     

  • CAD/USD

    0.7316
    -0.0007 (-0.09%)
     

  • CRUDE OIL

    83.66
    +0.09 (+0.11%)
     

  • Bitcoin CAD

    87,318.94
    -1,147.28 (-1.30%)
     

  • CMC Crypto 200

    1,330.43
    -66.11 (-4.73%)
     

  • GOLD FUTURES

    2,349.60
    +7.10 (+0.30%)
     

  • RUSSELL 2000

    2,002.00
    +20.88 (+1.05%)
     

  • 10-Yr Bond

    4.6690
    -0.0370 (-0.79%)
     

  • NASDAQ

    15,927.90
    +316.14 (+2.03%)
     

  • VOLATILITY

    15.03
    -0.34 (-2.21%)
     

  • FTSE

    8,139.83
    +60.97 (+0.75%)
     

  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     

  • CAD/EUR

    0.6838
    +0.0017 (+0.25%)
     

J.M. Smucker Falls on Secondary Offering by Shareholder

Zacks Equity Research
Updated

Shares of The J.M. Smucker Co. SJM slipped 1.75% in the after-market trading on Monday, after one of the company’s stakeholders intended to sell shares in a secondary offering.

Ohio-based Smucker announced that Blue Holdings I LP will make an underwritten secondary offering of about 8.3 million shares. The shares to be sold represent 100% of the ownership interests attributable to the affiliates of Kohlberg Kravis Roberts & Co. L.P. Blue Holdings had made a similar secondary offering of 4.92 million shares in July.

It should be noted that since no shares are being sold by the company, the proceeds will go to shareholders who make the offering. Morgan Stanley MS is acting as the underwriter for the offering.

Smucker previously issued 17.06 million shares to the selling shareholder on Mar 23, 2015 in connection with the company's acquisition of Big Heart Pet Brands.

ADVERTISEMENT

San Francisco-based Big Heart Pet Brands is a leader in the premium-quality, branded pet food and pet snacks. The deal has placed Smucker well in the $21 billion pet food and snacks category, one of the largest and fastest growing categories in the U.S.

The company has been pursuing acquisitions to boost its portfolio. Apart from Big Heart Pet Brands, Smucker acquired Seattle, WA-based Sahale Snacks, Inc. in early Sep 2014. Sahale snacks manufactures and markets premium, branded nut and fruit snacks.

These acquisitions have contributed significantly to the company’s revenues and earnings in the recently reported first quarter fiscal 2016. The acquisition of Big Hearts Pet Brand contributed $561.3 million while Sahale Snacks added $7.7 million to the first quarter sales. Also, the launch of Dunkin’ Donuts K-cup pods fueled growth. Smucker licenses Dunkin’ Donuts from Dunkin’ Brands Group, Inc. DNKN.

Besides, this coffee company has been in the news after it lowered packaged coffee prices of the majority of its products sold in the U.S., primarily consisting of items under the Folgers and Dunkin' Donuts brands. However, the company expects the impact of reduced coffee costs to be evident from the second quarter of fiscal 2016.

Smucker has a Zacks Rank #3 (Hold). A better-ranked stock in the consumer staples space is Cal-Maine Foods, Inc. CALM, sporting a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
MORGAN STANLEY (MS): Free Stock Analysis Report
 
SMUCKER JM (SJM): Free Stock Analysis Report
 
CAL-MAINE FOODS (CALM): Free Stock Analysis Report
 
DUNKIN BRANDS (DNKN): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research