Conagra Brands on Wednesday, June 27, announced plans to acquire Pinnacle Foods in a cash-and-stock deal valued at about US$8.1 billion that furthers Conagra’s transformation under CEO Sean Connolly and its push into frozen foods, reported Bloomberg.
The purchase will give Chicago-based Conagra more exposure to one of the few bright spots in the grocery store: frozen food sales are growing after years of decline. Even millennials, known for their foodie tastes, are embracing frozen meals, which are convenient and less expensive than takeout. More than half of Pinnacle’s revenue comes from frozen brands including Birds Eye, Van de Kamp’s and the Gardein line of vegetarian products.
The deal is the culmination of on-again, off-again talks the two have had for years. It comes months after activist investor Jana Partners disclosed a roughly 9% stake in Pinnacle and said it planned to talk with the company about a possible sale.
Full Content: Bloomberg
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