Conagra acquires Pinnacle Foods in US$8.2 billion deal
By Canadian Packaging staffGeneral Conagra Brands Inc. frozen food company acquisition Pinnacle Foods Inc.
Purchase of Pinnacle will help Conagra grow its packaged foods market segment.
Look what US$8.2 billion can get you…
Conagra Brands Inc. has agreed to acquire Pinnacle Foods Inc. in a deal expected to be around US$8.2 billion, that Conagra is banking on to help it gain a stronger grip on the packaged foods segment – specifically within the freezer aisle of the grocery store.
The deal, when consummated will make Conagra the second-largest frozen food enterprise behind only Nestlé. Conagra already owns the Healthy Choice line, while Pinnacle has the Bird’s Eye brand.
Both companies had been growing their own bases, with Pinnacle acquiring Boulder Brands in 2016 for US$975 million adding gluten-free foods such as the Udi’s and Glutino brands.
Conagra had sold its private-label business in 2016 for US$2.7 billion, as well in a separate deal, its potato enterprise for US$6.9 billion. Not just shedding, Conagra was also gobbling up small snack brand manufacturers such as Angie’s Artisan Treats and Thanasi Foods.
In Pinnacle Foods, Conagra sees that companies strength in the frozen food aisle, a market segment currently in a resurgence, seeking to increase its presence in that sector with products directed towards younger consumers.
Including debt, the deal is actually worth US$10.9 billion, and will be financed in a cash and stock transaction.
Conagra Brands employs over 13,000 people, including about 500 in Canada. Company information available at www.conagrabrands.ca.