Pinnacle Foods will pay $11 per share to acquire Boulder Brands in a transaction that values the company at $975 million.
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Gamgort also explained that the much sought after millennials also often are drawn to products sold around the store’s perimeter and the refrigerated section, where Pinnacle has not traditionally focused but where it will now have a presence through Boulder Brand’s Earth Balance and Smart Balance spreads.
Pinnacle, whose Hungry-Man and Birds Eye frozen meals are popular among consumers pressed for time, said the Boulder Brands deal would give it a “new growth platform” in the frozen foods segment. “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, Colo”. Boulder Brands” objective has been to “lead change and improve lives’ and today marks an important milestone in that journey.
Boulder Brands’ annual net sales totaled over $500 million in 2014. The deal includes roughly $265 million of debt, Pinnacle said.
Up to Monday’s close, Boulder Brands’ shares had fallen about 9 percent this year, while Pinnacle had risen 22.4 percent. “We expect a seamless transition and look forward to accelerating our growth across an impressive collection of health and wellness brands as part of Pinnacle Foods”, Dean Hollis, chairman of Boulder, said in a prepared statement.
Pinnacle said Tuesday that it will provide 2016 guidance, including the acquisition, when it reports fourth-quarter earnings in February.
(NYSE: PF) announced on Tuesday morning that the company has struck a deal to acquire Boulder Brands (Nasdaq: BDBD) for $11 per share.
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Shares of Pinnacle Foods were last trading down 0.5% at $42.97, with a consensus analyst price target of $46.64 and a 52-week trading range of $32.90 to $48.13.
