Hillshire acquires rival food firm Pinnacle for $6.6bn

Jimmy Dean Hillshire, which makes Jimmy Dean sausages, was formerly known as Sara Lee

Related Stories

US food firm Hillshire Brands has said it is buying rival company Pinnacle Foods for a deal worth $6.6bn (£4bn).

Hillshire's brands include Jimmy Dean, Ball Park and Sara Lee, while Pinnacle is known for Aunt Jemima and Duncan Hines.

The combined company, which will be based in Chicago, is expected to generate $6.6bn in annual sales.

Following the news, shares in both companies were up on the New York Stock Exchange in pre-market trading.

In a statement, Hillshire said it would acquire all outstanding shares of Pinnacle Foods in a cash and shares transaction.

"The acquisition creates a leading branded food company with enhanced scale, reach, and capabilities, while providing margin expansion," said president and chief executive of Hillshire Brands, Sean Connolly.

Mr Connolly will run the combined company, which will retain the Hillshire name.

Pinnacle's chief executive, Bob Gamgort, said the deal "speaks to the value Pinnacle employees have created". He added that the new firm would have a "broad reach across frozen, refrigerated and grocery categories".

Pinnacle shareholders will receive $18 for each share held, plus half a share in Hillshire. They will own approximately 33% of the combined company.

Although both companies' boards unanimously approved the merger, it is subject to regulatory and shareholder approval.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • Abdi Nor IftinGolden ticket

    How a refugee entered a lottery and won a new life in the US


  • Herring in a fur coatMerry herring

    How fish 'in a fur coat' is enough to make Russia's New Year happy


  • Curiosity Self-Portrait at 'Windjana' Drilling SiteIn pictures

    The most stunning space photos of the year


  • Amy Adams, Cate Blanchett, Sandra Bullock and Dame Judi DenchFilm quiz of 2014

    How much do you remember about the past 12 months?


From BBC Capital

Programmes

  • Tom BrookTalking Movies Watch

    Tom Brook looks back at some of the best movies of 2014 from around the world

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.