June 4 (Bloomberg) -- J.M. Smucker Co., the maker of Smucker's jams and Jif peanut butter, will purchase Procter & Gamble Co.'s Folgers coffee unit for $3.3 billion, including debt, to expand its portfolio of food brands in the U.S.

Smucker will pay for Folgers with stock and assume $350 million of debt, the companies said today in a statement on PR Newswire. The Orrville, Ohio-based jam maker will also issue a $5 a share dividend before the purchase.

To contact the reporter on this story: Heather Burke in New York at hburke2@bloomberg.net.

Last Updated: June 4, 2008 08:13 EDT