U.S. food company Hillshire Brands Co. will acquire Pinnacle Foods, which produces a number of well-known frozen food products including the Mrs. Paul’s and Van de Kamp’s frozen seafood lines, in a deal worth USD 6.6 billion (EUR 4.8 billion), according to a statement from both companies.
Under the terms of the agreement, each share of Pinnacle Foods common stock will be exchanged for USD 18 (EUR 13) in cash and 0.50 shares of Hillshire Brands common stock. The total value includes Pinnacle’s outstanding net debt.
“The complementary portfolios and strategic fit of these two companies create significant value for the shareholders of both organizations,” said Bob Gamgort, Pinnacle’s CEO. “Our common passion for developing innovative products and maintaining close ties with our customers will position the combined entity to deliver outstanding benefits for employees, customers and shareholders.”
The combined company will operate under the Hillshire Brands name and will be headquartered in Chicago. Sean Connolly, Hillshire’s current president and CEO, will remain president and CEO of the combined company.
“We believe our increased scale combined with a more diversified portfolio will deliver strong, consistent cash flows,” Connolly said. “This will enable us to continue to invest in our brands, enhance our portfolio, pursue value accretive M&A and deliver significant long-term value to our shareholders.”
