December 26, 2015

Pinnacle Foods Inc.is expanding its share in the growing health and wellness segments and the natural and organic food space with the acquisition of Boulder Brands. The transaction, valued at $975 million including $265 million of net debt, will also giving the group a new platform from which to expand in refrigerated foods. The acquisition will be funded through a combination of available cash and new debt, and is expected to be finalized within the first quarter of 2016.

Headquartered in Boulder, Colorado, Boulder Brands’ portfolio of products scans a variety of popular better-for-you brands including Udi’s and Glutino gluten-free foods, EVOL natural frozen meals, and the Smart Balance and Earth Balance shelf-stable and refrigerated spreads, which are sold in both traditional and natural retail channels across the U.S.. Boulder Brands reported annual net sales in 2014 in excess of $500 million.

"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 a recent press release. “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, Colorado.  In this regard, we plan to retain Boulder's existing headquarters location."

Pinnacle forecasts that after the completion of the deal, over the next two years Boulder Brands will see an increase to its 2015 consensus adjusted earnings before interest, tax, depreciation and amortization (Ebitda) of $62 million by 50% resulting from Pinnacle’s plan of portfolio consolidation, cost saving actions, and other synergies.

Ranked by Fortune Magazine as being in the top 1,000 companies for 2015, Pinnacle Foods’ products are present in over 85% of U.S. households. Headquartered in Parsippany, New Jersey, Pinnacle’s portfolio of branded foods includes Birds Eye products, Van de Kamp’s and Mrs. Paul’s seafood products, Hungry-Man frozen dinners, Aunt Jemima frozen breakfasts, Lender’s bagels, Wish Bone and Western salad dressings, Duncan Hines baking mixes and frostings, and Vlasic pickles, among others.