PARSIPPANY, N.J. -- Refrigerated and shelf-stable food manufacturer Pinnacle Foods Inc. announced today that it will acquire Boulder Brands Inc. in a strategic transaction that expands Pinnacle’s presence in the growing and complementary health and wellness categories. The transaction also expands Pinnacle’s presence in the natural and organic retail channel and provides Pinnacle with a new growth platform in refrigerated foods.
Under the terms of the agreement, Pinnacle Foods intends to launch a tender offer to acquire all of the outstanding shares of Boulder Brands for $11 per share in a transaction valued at approximately $975 million, including approximately $265 million of net debt.
Boulder Brands, based in Boulder, Colo., manufactures a portfolio of health and wellness brands, including Udi’s and Glutino gluten-free products, EVOL natural frozen meal offerings, and Smart Balance and Earth Balance refrigerated and shelf-stable spreads businesses. The Boulder Brands portfolio is sold in both traditional and natural and organic channels in the U.S., with a consumer base that skews younger than that of Pinnacle’s current portfolio average. Annual net sales of Boulder Brands totaled over $500 million in 2014.
“The acquisition of Boulder Brands further expands our health and wellness portfolio, currently anchored by the Birds Eye and gardein brands," said Pinnacle Foods chief executive officer Bob Gamgort. "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. In this regard, we plan to retain Boulder’s existing headquarters location.”
Dean Hollis, chairman of Boulder Brands, said, “This combination provides significant benefits for all stakeholders. ... Together with Pinnacle Foods, Boulder Brands will have additional and stronger resources to drive our brands and deliver value to customers and consumers, while providing new opportunities for employees. 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.”
Parsippany, N.J.-based Pinnacle Foods is a leading producer, marketer and distributor of high-quality branded food products, including Birds Eye, gardein, Birds Eye Steamfresh, C&W, McKenzie's and Freshlike frozen vegetables, as well as Hungry-Man frozen dinners and entrees, Aunt Jemima frozen breakfasts, Lender's frozen and refrigerated bagels and Celeste frozen pizza.
Boulder Brands Inc. is committed to offering food solutions that give consumers opportunities to improve their lives one product at a time. The company's health and wellness platform consists of brands that target specific health trends: the Glutino and Udi's Gluten Free brands for gluten-free diets; the Earth Balance brand for plant-based diets; EVOL foods for consumers seeking simple and pure ingredients; and the Smart Balance brand for heart healthier diets.
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