Hillshire Brands agreed to purchase Parsippany, NJ-based Pinnacle Foods in a cash-and-stock deal worth about $6.6 billion.
The deal will combine Pinnacle, which owns brands including Duncan Hines and Log Cabin syrup, with Hillshire, which has brands including Jimmy Dean, Bird's Eye and Sara Lee. Together, the companies will have annual revenue of about $6.6 billion. Upon completion of the merger, the combined company would be headquartered in Chicago and led by the current Hillshire president and CEO, Sean Connolly.
“The combination of Hillshire Brands and Pinnacle Foods brings together two highly complementary organizations with strong brands, skilled employees and lean cost structures,” said Connolly in a statement issued Monday. “The acquisition creates a leading branded food company with enhanced scale, reach, and capabilities while providing margin expansion and strong EPS accretion. 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.”
Hillshire said it expects the deal to immediately add to earnings and generate $140 million in annual cost savings three years after the deal closes.
The move comes just weeks after Hillshire snapped up Van’s Natural Foods in a $165mn deal.