05.13.14
The Hillshire Brands Company, Chicago, IL, and Pinnacle Foods Inc., Parsippany, NJ, have entered an agreement under which Hillshire Brands will acquire all outstanding shares of Pinnacle Foods in a cash and stock transaction. The total enterprise value of the transaction is approximately $6.6 billion.
The transaction brings together two complementary businesses with leading, iconic brands to create a diversified food company with estimated pro forma 2014 sales of $6.6 billion. On a combined basis, the companies will have leading positions in key frozen, refrigerated and center of store grocery categories.
“The acquisition creates a leading branded food company with enhanced scale, reach and capabilities while providing margin expansion and strong EPS accretion,” said Sean Connolly, president and CEO of Hillshire Brands. “The new Hillshire Brands will have a strengthened position in frozen foods, new opportunities in the center store for our brands and in refrigerated for Pinnacle Foods’ brands. We believe our increased scale combined with a more diversified portfolio will deliver strong, consistent cash flows. 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.”
The transaction brings together two complementary businesses with leading, iconic brands to create a diversified food company with estimated pro forma 2014 sales of $6.6 billion. On a combined basis, the companies will have leading positions in key frozen, refrigerated and center of store grocery categories.
“The acquisition creates a leading branded food company with enhanced scale, reach and capabilities while providing margin expansion and strong EPS accretion,” said Sean Connolly, president and CEO of Hillshire Brands. “The new Hillshire Brands will have a strengthened position in frozen foods, new opportunities in the center store for our brands and in refrigerated for Pinnacle Foods’ brands. We believe our increased scale combined with a more diversified portfolio will deliver strong, consistent cash flows. 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.”