CHICAGO – Conagra Brands Inc. has completed its acquisition of Pinnacle Foods following the approval of Pinnacle Foods’ shareholders and satisfaction of all terms and conditions. Through the acquisition, Conagra Brands adds to its portfolio of brands including Birds Eye, Duncan Hines, Earth Balance, Gardein, Glutino, Udi’s,Wish-Bone and Evol.
“Expanding Conagra Brands’ portfolio through the acquisition of Pinnacle Foods creates a tremendous opportunity to drive profitable growth and shareholder value by further leveraging our proven approach to innovation, brand-building, operational excellence and deep customer relationships,” said Sean Connolly, president and CEO of Conagra Brands. “We are excited to combine the Pinnacle and Conagra Brands portfolios in the attractive frozen meals and snacks and sweet treats categories. The complementary brands, operations and results-oriented cultures will help facilitate an effective integration and the continued transformation of Conagra Brands.”
The deal was first announced in late June. At the time, the companies said Conagra Brands would pay approximately $10.9 billion for Parsippany, New Jersey-based Pinnacle Foods. The combined company will have sales of approximately $11 billion based on both companies’ fiscal year results.
Conagra Brands said it expects the transaction to be low single-digit accretive to adjusted earnings per share on a percentage basis in the fiscal year ended May 2020 and high single-digit accretive to adjusted earnings per share in the fiscal year ended May 2022. Conagra management added that it forecasts $215 million in annual costs synergies by the end of fiscal 2022.