Pinnacle Foods (PF) has announced that it will be buying Boulder Brands (BDBD) for $975 million.
Pinnacle Foods will be paying $11 a share for Boulder Brands. The company plans to fund the deal with cash and new debt. The deal also includes $265 million of net debt. PF claims that the deal will benefit both companies by decreasing costs and increasing presence. It expects the acquisition to be completed in Q1 2016.
Pinnacle Foods said that it expects the acquisition to be accretive to its EPS in 2016. It plans to announce 2016 guidance during February next year. It said that this guidance will include Boulder Brands. It expects BDBD’s Adjusted EBITDA in 2015 of $62 million to increase by 50%.
Pinnacle Foods deals in a variety of different categories in the food market. It offers Wish-Bone salad dressing, Hungry Man frozen diners and more. Boulder Brands has a focus on health foods and it offers various gluten-free products.
PF shares were down 3% and BDBD shares were up 8% as of Noon Tuesday.
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