Chicago — The boards of directors for Conagra Brands, Inc. and Pinnacle Foods Inc. have approved a definitive agreement in which Conagra will purchase all outstanding shares of Pinnacle in a cash and share transaction valued at an estimated $10.9 billion, including the acquired firms outstanding debt.
The deal aligns with Conagra’s multi-year expansion plan and increases the company’s presence in strategic categories such as snacks and frozen foods. Pinnacle’s portfolio, which generates about $3 billion in net sales annually, includes lines such as Tim’s Cascade Snacks, Hawaiian Kettle Style Potato Chips, all-natural popcorn maker Erin’s, gluten-free brands Udi’s and Glutino, and pantry staples such as Duncan Hines, Vlasic and Wish-Bone, the acquiring firm reports.
The combined companies’ pro forma net sales would have been approximately $11 billion, based on both firms’ latest fiscal year results, according to Conagra.
“The acquisition of Pinnacle Foods is an exciting next step for Conagra Brands. After three years of transformative work to create a pure-play, branded food company, we are well-positioned to accelerate the next wave of change,” says Sean Connolly, president and CEO for 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. With greater scale across leading, iconic brands, an unwavering focus on driving profitable growth, and a strong balance sheet and cash flow, we are creating a tremendous platform to drive meaningful shareholder value.”