Conagra Brands is in “advanced talks” to acquire fellow US company Pinnacle Foods, according to CNBC.
The move would see two companies with a large presence in the frozen food sector join forces; Pinnacle owns Birds Eye and Celeste pizzas, while Conagra’s brands include Banquet Foods frozen meals and VH Steamers.
An acquisition would follow years of speculation regarding a potential deal. Last June Conagra reportedly made an approach for Pinnacle, which Reuters said had a market value of around $7.2 billion.
Meanwhile, Conagra CEO Sean Connolly was chief executive of Hillshire Brands when it tried to purchase Pinnacle in 2014.
Conagra and Pinnacle have both declined to comment on the latest move and CNBC said that the deal “could still fall apart”.
In its most recent quarterly results, Pinnacle saw sales in its frozen segment increase by 7.5% to $321 million.
Pinnacle CEO said: “The exceptionally strong retail consumption and market share performance that we have experienced over the past several quarters has continued into 2018.”
A move by Conagra would see the company continue to restructure its portfolio of brands following an active 12 months in which it has acquired Angie’s Artisan Treats, the maker of Angie’s Boomchickapop ready-to-eat popcorn, and sandwich manufacturer Sandwich Bros. of Wisconsin.
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