Wired News - Conagra Brands Acquires Pinnacle Foods
LONDON, UK / ACCESSWIRE / June 29, 2018 / If you want access to our free research report on Conagra Brands, Inc. (NYSE: CAG), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CAG as the Company's latest news hit the wire. On June 27, 2018, the Company announced that it has struck a deal to acquire Pinnacle Foods Inc. (NYSE: PF) in a cash and stock transaction valued at approximately $10.9 billion, including Pinnacle Foods' outstanding net debt. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Conagra Brands and Pinnacle Foods Pinnacle Foods most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/?symbol=CAG
www.active-investors.com/registration-sg/?symbol=PF
Terms of the Deal
Pinnacle Foods' shareholders will receive $43.11 per share in cash and 0.6494 shares of Conagra Brands common stock for each share of Pinnacle Foods held. Pinnacle Foods' shareholders will own approximately 16% of the combined Company.
Conagra Brands has secured $9.0 billion in fully committed bridge financing from affiliates of Goldman Sachs. The purchase price will be financed with $3.0 billion of Conagra Brands equity, and $7.9 billion in cash consideration funded with $7.3 billion of transaction debt and $600 million of incremental cash proceeds from a public equity offering and/or divestitures.
Conagra Brands intends to maintain its quarterly dividend at the current annual rate of $0.85 per share during FY19. Pinnacle Foods will continue to pay its quarterly dividend at the current annual rate of $1.30 per share until the transaction is completed.
Conagra Brands expects the transaction to be low single-digit accretive to adjusted earnings per share (EPS) in the fiscal year ended May 2020, and high single-digit accretive to adjusted EPS in the fiscal year ended May 2022.
The Company also expects to achieve approximately $215 million in annual run-rate cost synergies by the end of fiscal year 2022.
The transaction, expected to close by the end of 2018, is subject to the approval of Pinnacle Foods' shareholders, and to the receipt of regulatory approvals and other customary closing conditions.
Strategic Benefits
The combination of two growing portfolios of iconic brands will create value for shareholders. The transaction will enhance Conagra Brands' multi-year transformation plan and expand its presence and capabilities in its most strategic categories, including frozen foods and snacks. With annual net sales in excess of $3 billion, Pinnacle Foods' portfolio of frozen, refrigerated, and shelf-stable products includes well-known brands such as Birds Eye, Duncan Hines, Earth Balance, EVOL, Erin's, Gardein, Glutino, Hawaiian Kettle Style Potato Chips, Hungry-Man, Log Cabin, Tim's Cascade Snacks, Udi's, Vlasic and Wish-Bone, among others.
Transaction Provides Pinnacle Foods' Shareholders with Substantial and Immediate Value
Commenting on the acquisition, Mark Clouse, Chief Executive Officer (CEO) of Pinnacle Foods, stated that the transaction provides Pinnacle Foods' shareholders with substantial and immediate value, as well as the opportunity to participate in the significant upside potential of the combined Company. Clouse added that because of Pinnacle Foods' employees' incredible work, the Company's total shareholder return is approximately 275% since its IPO, and the transaction marks an important milestone in the Company's journey. The portfolios and capabilities of both enterprises are impressive and complementary.
About Conagra Brands, Inc.
Founded in 1919 and headquartered in Chicago, Illinois, Conagra Brands is one of North America's leading branded food Companies. Guided by an entrepreneurial spirit, Conagra Brands combines a rich heritage of making great food with a sharpened focus on innovation.
About Pinnacle Foods Inc.
Headquartered in Parsippany, New Jersey, Pinnacle Foods is a leading manufacturer, marketer, and distributor of high-quality branded food products with a mission of unleashing brand potential. Its portfolio includes well-known brands competing in frozen, refrigerated, and shelf-stable formats, such as Birds Eye, Birds Eye Voila!, Duncan Hines, Earth Balance, EVOL, Gardein, Glutino, Hungry-Man, Log Cabin, along with many others.
Stock Performance Snapshot
June 28, 2018 - At Thursday's closing bell, Conagra Brands' stock rose 1.07%, ending the trading session at $35.83.
Volume traded for the day: 15.65 million shares, which was above the 3-month average volume of 3.26 million shares.
After yesterday's close, Conagra Brands' market cap was at $14.06 billion.
Price to Earnings (P/E) ratio was at 23.18.
The stock has a dividend yield of 2.37%.
The stock is part of the Consumer Goods sector, categorized under the Processed & Packaged Goods industry. This sector was up 0.6% at the end of the session.
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