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.

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