J.M. Smucker ( SJM) will acquire International Multifoods ( IMC) for stock and cash worth about $483 million, plus $340 million of assumed debt.

The value to International Multifoods holders is about $25 a share, payable in about 80% Smucker stock and 20% cash. International Multifoods shares were recently up $3.19, or 16.3%, to $22.78 on the Instinet premarket session.

The merged companies' combined sales should top $2.3 billion, Smucker said, while combined retail sales of the categories in which the company now participates will rise to $6.5 billion from $3 billion as a result of the acquisition.

Smucker predicted the transaction will result in cost savings via synergies of $40 million to $60 million by the third year after closing.

More from Opinion

Elon Musk's Latest Twitter Tirade Is the Dumbest Thing on Wall Street

Elon Musk's Latest Twitter Tirade Is the Dumbest Thing on Wall Street

Elon Musk's Twitter Tirade Is the Dumbest Thing on Wall Street

Elon Musk's Twitter Tirade Is the Dumbest Thing on Wall Street

Why Google's Search Momentum Won't Be Badly Hurt by New EU Rules

Why Google's Search Momentum Won't Be Badly Hurt by New EU Rules

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Time to Talk Tesla: What Happened This Week, Elon?

Time to Talk Tesla: What Happened This Week, Elon?