The Wm. Wrigley Jr. Company announced it has successfully completed the purchase of certain confectionery assets of Kraft Foods Global Inc. for $1.46 billion. The transaction gives Wrigley ownership of iconic brands such as Altoids, Life Savers, Creme Savers and Sugus, as well as various regional and local brands and additional production capabilities.
The purchase price will be offset in part by approximately $300 million in cash tax benefits associated with amortization of intangible assets. The net acquisition cost of $1.16 billion represents 2.4 times 2004 sales. This transaction, including one-time costs, is expected to be slightly dilutive to earnings in 2005 and slightly accretive in 2006.