Hillshire Brands buying Pinnacle Foods for $6.6bn

May 13, 2014 - 8:49:35 am
Pinnacle Foods CEO Bob Gamgort (centre) and company executives ring the opening bell, in celebration of the company’s IPO at the New York Stock Exchange in this file photo.

NEW YORK: US food giant Hillshire Brands is buying Pinnacle Foods, boosting its position in frozen foods, in a cash-and-stock $6.6bn deal including debt, the companies said yesterday.

Hillshire Brands, the Chicago-based maker of Jimmie Dean sausages, Ball Park hot dogs and Sara Lee frozen bakery goods, will buy Pinnacle in exchange for $18 per share and a half share of Hillshire stock.

The offer represents a bid of $36.02 per share, an 18 percent premium to Pinnacle’s closing price Friday.

The seller is private-equity firm Blackstone Group, which bought Pinnacle in 2007 for $2.2bn and reintroduced it on the market in an initial public offering in 2013.

AFP

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