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    Hillshire Brands to Acquire Pinnacle Foods

    Deal valued at $6.6B

    By Kyle Shamorian, Stagnito Business Information

    The Hillshire Brands Co. has said it will acquire all outstanding shares of Pinnacle Foods in a cash and stock transaction estimated at $6.6 billion. The deal is expected to close September 2014.

    The combined company, which will be based in Chicago, will operate under the Hillshire Brands name and be led by President and CEO Sean Connolly. Hillshire will appoint a representative from New York-based private equity firm Blackstone, which owns 51 percent of Pinnacle's outstanding stock, to its board upon the transaction's closing.

    Under the terms of the agreement, each share of Pinnacle common stock will be exchanged for $18 in cash and 50 cent shares of Hillshire Brands common stock.

    “This compelling transaction offers Pinnacle Foods shareholders an immediate premium and the opportunity to participate in the tremendous potential of the combined organization,” said Bob Gamgort, CEO of Parsippany, N.J.-based Pinnacle. “The complementary portfolios and strategic fit of these two companies create significant value for the shareholders of both organizations."

    The acquisition, which comes on the heels of Hillshire's recent purchase of Van's Natural Foods, slated to close this month, aims to significantly increase its presence across the frozen, refrigerated and center store categories, with such brands as Jimmy Dean, Hillshire Farm, Birds Eye, Ball Park, Duncan Hines, Vlasic, Wish-Bone, State Fair, Sara Lee frozen bakery, Mrs. Butterworth's and Log Cabin.

    By Kyle Shamorian, Stagnito Business Information
    • About Kyle Shamorian In his digital editor role, Kyle Shamorian oversees all content on progressivegrocer.com, Progressive Grocer’s online extension that features real-time daily news, exclusive content, new products, blogs, and related multimedia products. In addition to writing and editing content on a wide range of grocery industry issues, Kyle helms the Brain Food department in PG’s print edition, which spotlights shopper behavior and consumer trends in the retail industry. Before joining Progressive Grocer’s editorial team in July 2012, Kyle, a 2003 graduate of Marquette University, previously managed digital platforms for a variety of industries.

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