Conagra buying Pinnacle Foods in $10.9 billion deal
Conagra is buying Pinnacle Foods Inc. in a cash-and-stock deal valued at about $10.9 billion that will help the food company expand in the frozen food and snacks categories with brands such as Birds Eye and Duncan Hines.
Chicago-based Conagra has brands such as Reddi-wip, Hunt's, Health Choice and Slim Jim.
Pinnacle shareholders will receive $43.11 per share in cash and 0.6494 shares of Conagra Brands Inc. stock for each share of Pinnacle held. The transaction also includes Pinnacle's outstanding debt, the companies said Wednesday.
"The addition of Pinnacle Foods' leading brands in the attractive frozen foods and snacks categories will create a tremendous opportunity for us," said Sean Connolly, the chief executive officer of Conagra Brands, in a statement.
Pinnacle shareholders are expected to own approximately 16 percent of the combined company.
The deal is targeted to close by the end of the year. It still needs approval from Pinnacle shareholders.
Pinnacle's stock fell 2.7 percent in premarket trading, while Conagra's shares rose slightly.
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