by Christopher Freeburn | August 12, 2013 11:55 am
Shares of Pinnacle Foods (PF) surged more than 4% in Monday midday trading after the company announced an acquisition.
Pinnacle says it will pay $580 million to purchase the Wise-Bone salad dressing brand, which generates about $190 million in annual sales, from Unilever (UL). The transaction is expected to close by the fourth quarter of this year, the Associated Press notes.
The deal, which will be financed with additional debt and cash, does not include Unilever’s Independence, Mo., production facility.
Pinnacle produces Duncan Hines frostings, Birds Eye frozen foods and Vlasic Pickles. The company held an initial public offering in March.
Unilever was rumored to be looking for a buyer for its Wish-Bone brands back in May.
Shares of Unilever slipped modestly in Monday midday trading.
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