Conagra Brands to acquire Pinnacle Foods for $10.9 billion
Conagra Brands Inc. and Pinnacle Foods Inc. have announced that their boards of directors have unanimously approved a definitive agreement under which Conagra Brands will acquire all outstanding shares of Pinnacle Foods in a cash and stock transaction valued at approximately $10.9 billion, including Pinnacle Foods’ outstanding net debt.
Conagra Brands Inc. and Pinnacle Foods Inc. have announced that their boards of directors have unanimously approved a definitive agreement under which Conagra Brands will acquire all outstanding shares of Pinnacle Foods in a cash and stock transaction valued at approximately $10.9 billion, including Pinnacle Foods’ outstanding net debt.
The transaction will enhance Conagra Brands’ multi-year transformation plan and expand its presence and capabilities in its most strategic categories, including frozen foods and snacks. With annual net sales of more than $3 billion, Pinnacle Foods’ portfolio of frozen, refrigerated, and shelf-stable products includes such well-known brands as Birds Eye, Duncan Hines, EVOL, Erin’s, Gardein, Glutino, Udi’s, Vlasic, and Wish-Bone, among others. Based on both companies’ latest fiscal year results, pro forma net sales would have been approximately $11 billion.
“The acquisition of Pinnacle Foods is an exciting next step for Conagra Brands,” said Sean Connolly, president and chief executive officer of Conagra Brands. “The addition of Pinnacle Foods’ leading brands in the attractive frozen foods and snacks categories will create a tremendous opportunity for us to further leverage our proven innovation approach, brand-building capabilities, and deep customer relationships.”
The transaction is expected to close by the end of calendar 2018, subject to the approval of Pinnacle Foods shareholders, the receipt of regulatory approvals, and other customary closing conditions.
“Combining ConAgra and Pinnacle would really create a new giant up toward the top of the U.S. packaged food industry, edging closer to names like Kraft Heinz and Nestle in share, and particularly a new one in the frozen food aisle, with household name brands like Birds Eye and Healthy Choice, both of which are experiencing strong recent growth and a bit of a resurgence, all housed under one roof,” said Dewey Warner, research analyst at Euromonitor International.