CINCINNATI (AdAge.com) -- Procter & Gamble Co. will complete its divestiture of Jif peanut butter and Crisco shortening and oil to J.M. Smucker Co. on June 1, P&G announced today.
P&G said it has
received a favorable Internal Revenue Service private-letter ruling concerning tax effects, allowing the tax-free deal, valued at around $1 billion, to proceed.
Jif and Crisco will be spun off, then immediately merged into Smucker. P&G shareholders will receive one share of Smucker for every 50 shares of P&G stock.
Grey Global Group's Grey Worldwide, New York, will handle the brands for Smucker as it has for P&G.
Jif and Crisco have combined sales of about $700 million.