Just add capital

1 June 2017 By Robert Cyran Follow @rob_cyran

Conagra is interested in buying $8 bln Pinnacle Foods, and both are eyeing Reckitt Benckiser’s North American food unit. Stagnating sales are pushing firms to bulk up in search of greater profits. With everyone looking to buy, selling is likely to generate the tastiest results.

This content is for Subscribers only

Context News

Conagra Brands has approached Pinnacle Foods and expressed interest in acquiring the $7.8 billion packaged-foods company, Reuters reported, citing sources familiar with the matter.

Conagra’s chief executive is Sean Connolly. As CEO of Hillshire Brands in 2014, Connolly reached an agreement to buy Pinnacle, but that sale was canceled after Pilgrim's Pride made a bid for Hillshire. It was later outbid by Tyson Foods, which acquired Hillshire.

Conagra spun off Lamb Weston, a frozen-potato business worth $6.9 billion, in 2016. The previous year Conagra sold its white-label subsidiary Ralcorp for $2.7 billion, after paying $5.1 billion for it in 2012.

Pinnacle bought Boulder Brands, a maker of gluten-free foods and other specialty products, for $975 million last year.

Both Conagra and Pinnacle are considering making offers for Reckitt Benckiser's North American food business.

Email a friend

Please complete the form below.

Required fields *