J.M. Smucker To Acquire Gannett
Orrville, Ohio - The J.M. Smucker Company agreed early Monday morning to acquire McLean, Va.-based Gannett Company for $9.571 billion, paying $42 a share - a 49% premium over the company's share price as of Friday's close.
The deal illustrates J.M. Smucker's confidence in the over-the-air television business, which has struggled in recent years with declining viewership and the rise of Internet content.
"With television stations coming up for sale every second, we decided that now was a great time for Smucker's to get into the business" said J.M. Smucker CEO Richard K. Smucker. "These stations provide perfect vehicles for us to drive sales of our well-known food brands."
Gannett has itself acquired television stations, closing on its $1.5 billion purchase of Belo Corporation in December. But noticeably absent from the equation are Gannett's newspapers. The troubles of the newspaper business are well-known - and Smucker's may not want to be in the newspaper business.
"Gannett was not for sale, but Smucker's gave us a great offer," said Gannett CEO Gracia Martore. Martore would not comment on what would happen to Gannett's newspapers in the deal, nor would Richard K. Smucker.
Martore will stay on board as the head of Gannett, which will become the broadcasting division of Smucker's. No synergies are expected as a result of the deal, considering the two companies' completely different lines of business.
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