(Corrects to remove erroneous reference to Dunkin’ Donuts ownership in the first paragraph of a story that ran May 16.)
May 16 (Bloomberg) -- J.M. Smucker Co., the third biggest U.S. coffee maker, said it completed the acquisition of Rowland Coffee Roasters Inc.’s coffee brands and business operations for $360 million.
The purchase of the Miami-based seller of Hispanic brands Cafe Bustelo and Cafe Pilon will help J.M. Smucker of Orrville, Ohio, expand its coffee business in the northeast of the U.S. and southern Florida, where Rowland Coffee’s distribution channels are concentrated, according to a statement today.
Rowland Coffee is the first company that J.M. Smucker acquired since it bought Folgers Coffee Co. from Procter & Gamble Co. in 2008, according to a filing with the Security and Exchange Commission. J.M. Smucker, led by Co-Chief Executive Officers Timothy Smucker and Richard Smucker, gained 30 percent in the past year, compared with 17 percent for the Standard & Poor’s 500 Index. The company fell 22 cents, or 0.3 percent, to $75.22 in New York Stock Exchange trading today.
“The addition of the Cafe Bustelo and Cafe Pilon coffee brands, each with a rich heritage, provides us with a unique opportunity to establish a strong presence in coffee with Hispanic consumers in the U.S.,” said Richard Smucker in the statement.
J.M. Smucker said the merger will add about 5 cents a share to fiscal 2012 earnings, excluding the one-time costs of the transaction, which may reach as much as $30 million, according to the statement. About $10 million of the one-time costs will be incurred in fiscal 2012 and the rest through 2014.
Manufacturing operations will be consolidated into J.M. Smucker’s coffee facilities in New Orleans in about three years, the company said.
Sales at privately held Rowland Coffee surpassed $110 million in 2010, the statement said.
J.M. Smucker started in 1897, when Jerome Smucker opened a mill and first pressed cider in Orrville, Ohio, according to the company’s website. He then began selling apple butter from the back of a horse-drawn wagon.
Smucker’s sells products such as ice cream toppings, jams and syrups under its name. The company owns more than 30 brands in the U.S. and Canada and exports its products globally, according to a SEC filing.
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