Pinnacle Foods Acquisition Target for Conagra

01 Jun 2017 --- North American packaged foods company Conagra has reportedly made a takeover approach towards Pinnacle Foods expressing interest in a potential acquisition. Headquartered in New Jersey, Pinnacle Foods specializes in shelf stable and frozen food categories, while Conagra is known for its brands including Healthy Choice, Hebrew National, Orville Redenbacher's, Pam and Reddi Wip. Other brands include Frontera salsa and Orville Redenbacher's popcorn.

This is not the first time Pinnacle Foods has been a takeover target. Three years ago its US$4.3 billion sale to Hillshire Brands was canceled after Hillshire agreed to sell itself to Tyson Foods Inc instead.
 
The attempt at an acquisition is raising questions over the need for consolidation in the condiments and frozen foods sectors where sales are flagging due to a change in consumer direction, with shoppers opting for healthier alternatives.
 
Neither of the companies are making any official comment at this stage and it is not yet clear if Pinnacle Foods will engage with the approach or how heavily it will be pursued.
 
Meanwhile just a few days ago Pinnacle Foods announced that its “Board of Directors has declared a quarterly cash dividend of US$0.285 per share, payable on July 7, 2017 to all common stockholders of record at the close of business on June 6, 2017.”
 
And on May 30, Conagra announced that it has entered into a definitive agreement with The J.M. Smucker Company (JMS) to divest the Wesson oil brand.
 
A statement says: “The transaction is subject to customary closing conditions, including the receipt of any applicable regulatory approvals. The transaction is valued at approximately US$285 million.”