Company agreed to buy Pinnacle for US$4.23 billion before Tyson made takeover offer for Hillshire
NEW YORK—Pinnacle Foods Inc. said it has scrapped its sale to Hillshire Brands Co., freeing Hillshire to be acquired by Tyson Foods, Inc.
Pinnacle Foods, which makes Birds Eye frozen vegetables, Duncan Hines cake mixes and Hungry-Man frozen dinners, said it will get a US$163-million breakup payment from Hillshire.
The Parsippany, N.J., company said it expects about US$25 million in one-time costs connected to the scotched sale.
Chicago-based Hillshire agreed to buy Pinnacle for US$4.23 billion in May.
But Tyson and Pilgrim’s went after Hillshire two weeks later, and on June 9, the company accepted Tyson’s US$7.75-billion offer.
The deal with Tyson, which is based in Springdale, Ark., is contingent on Hillshire walking away from its offer for Pinnacle.
Hillshire’s board had withdrawn support for the move because it considered the offer from Tyson a superior proposal.
Pinnacle said it will use the proceeds to reduce its debt.
The company’s other brands include Wish-Bone salad dressing, Celeste frozen pizzas and Vlasic pickles.
Hillshire, makes Jimmy Dean sausages, Ball Park hot dogs and Hillshire Farm lunch meat.