Conagra Brands acquires Pinnacle Foods shares

The acquisition means Pinnacle Foods, which owns three meat brands – Hungry-Man, Armour and Gardein – will receive $43.11 per share in cash and 0.6494 shares of Conagra Brands’ common stock.

Pinnacle Foods and Conagra Brands said the move would bring several strategic and financial benefits to the combined business, such as capitalising on trends in the frozen food market, merging iconic brands within attractive domains and providing significant synergy opportunities.

Pinnacle Foods CEO Mark Clouse said the deal marked an important milestone in the company’s journey.

“The transaction provides Pinnacle Foods shareholders with substantial and immediate value, as well as the opportunity to participate in the significant upside potential of the combined company​,” said Clouse.

“The portfolios and capabilities of both enterprises are impressive and complementary. We look forward to working through a seamless transition with the Conagra Brands team​.”

Meanwhile, Conagra Brands CEO Sean Connolly said that after three years of transformative work to create a branded food company, the business was now well-positioned to accelerate the next wave of change.

“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​,” said Connolly.

“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​.”

 The transaction, which is subject to approval, is set to be completed at the end of 2018.