Article: Philip Morris to Buy Coffee, Candy Firm;$3.8 Billion Offered for Swiss Conglomerate

Philip Morris Cos., makers of Maxwell House Coffee and Marlboro cigarettes, took another step away from the tobacco business when it announced yesterday it would acquire for $3.8 billion Swiss coffee and chocolate maker Jacobs Suchard AG.

When the acquisition is completed, Philip Morris, the largest maker of packaged food goods and tobacco products in the United States, will become the third largest food company in Europe.

Suchard, with sales of $4.7 billion, will retain its name and Zurich offices but will be linked with Philip Morris's Kraft General Foods International unit.

"We feel it certainly enhances our position in Europe," said Alice T. McGillion, spokesman for Philip ...

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