- Pinnacle Foods said Tuesday it would be acquiring Boulder Brands to help the company increase its health and wellness presence.
- The deal is valued at $975 million including $265 million in net debt and it expected to close in the first quarter of next year.
- "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," said Pinnacle CEO Bob Gamgort in a news release. "In this regard, we plan to retain Boulder's existing headquarters location."
M&A has been rampant across the food industry this year, especially in the health and wellness category as processed foods companies look to keep on trend to remain relevant in the marketplace.
Snyder's-Lance said it would be buying Diamond Foods for $1.91 billion including debt at the end of last month, also looking to boost its "better-for-you" category.
Pinnacle announced the purchase of Gardein last November, which is growing — the company is expanding production of the brand in Hagerstown, MD. The company has faith in plant-based proteins, and thinks they are "at the tipping point of becoming mainstream," Pinnacle Foods CEO Bob Gamgort told Food Business News.
"In addition to shareholder value, this combination provides significant benefits for all stakeholders," according to Dean Hollis, Boulder Brands chairman. "...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."