CHICAGO -- Conagra Brands has entered a definitive agreement to acquire Pinnacle Foods, a Parsippany, N.J.-based packaged foods company whose portfolio includes Birds Eye and other frozen meals.
With unanimous support from both organizations' boards of directors, Conagra will own all outstanding shares of Pinnacle for about $10.9 billion. The companies expect to close the transaction by late 2018.
The acquisition will make Conagra the fifth largest consumer packaged foods company in the United States and a leader in frozen foods, according to a company fact sheet.
The Chicago-based packaged-food giant expects to generate $215 million in annual run-rate cost synergies by the end of fiscal year 2022.
This isn’t the first step Conagra has made to expand its frozen-foods portfolio this year. The brand completed its acquisition of Milwaukee-based Sandwich Bros. of Wisconsin in May. Last year, Conagra also acquired Thanasi Foods LLC, maker of Duke's meat snacks and Bigs seeds, and Angie's Artisan Treats LLC, maker of Angie's Boomchickapop popcorn.
Conagra’s brands include Marie Callender’s, Reddi-wip, Hunt’s, Healthy Choice, Slim Jim and Orville Redenbacher.