Pinnacle Foods to buy Boulder Brands for $710 mn
25 Nov 2015
US packaged foods company Pinnacle Foods Inc yesterday struck a deal to buy Boulder Brands Inc for about $710 million in order to expand its portfolio of health and wellness offerings.
The proposed acquisition will also expand Pinnacle's presence in the natural and organic retail segment and provides Pinnacle with a new growth platform in refrigerated foods.
Under the terms of the agreement, Pinnacle Foods will pay $11 per share, valuing the transaction at approximately $975 million, including debt of $265 million.
Boulder Brands yesterday had a market value of about $622 million.
Based in Boulder, Colorado, Boulder Brands manufactures health and wellness products and has brands including Udi's and Glutino gluten-free products, Evol natural frozen meal offerings, and Smart Balance and Earth Balance refrigerated and shelf-stable spreads businesses.
The company had annual sales of over $500 million in 2014.
Pinnacle Foods is ranked among Fortune magazine's 2015 Top 1000 companies. It is a leading producer, marketer and distributor of branded food products, used by more than 85 per cent of American households.
The New Jersey-based company's Duncan Hines Grocery Division manages brands such as Duncan Hines baking mixes and frostings, Vlasic and Vlasic Farmer's Garden shelf-stable pickles, Wish-Bone and Western salad dressings, and others, while its Birds Eye Frozen Division manages brands such as Birds Eye, Birds Eye Steamfresh, C&W, McKenzie's, and Freshlike frozen vegetables.
Its Specialty Foods Division manages Tim's Cascade Snacks, Hawaiian kettle style potato chips, Erin's popcorn, Snyder of Berlin and Husman's snacks.
Commenting on the deal, Pinnacle Foods CEO, Bob Gamgort, said, ''The acquisition of Boulder Brands further expands our health and wellness portfolio, currently anchored by the Birds Eye and gardein brands. In addition to being a synergy-rich, accretive transaction with on-trend brands, the acquisition provides us with an important health and wellness talent pool in Boulder, Colorado.
Dean Hollis, chairman of Boulder Brands, said, ''Together with Pinnacle Foods, Boulder Brands will have additional and stronger resources to drive our brands and deliver value to customers and consumers, while providing new opportunities for employees.''
The transaction, subject to customary closing conditions,is expected to be completed in the first quarter of 2016.
