The acquisition was funded through a combination of cash on hand and new debt. The new debt consists of a $525m term loan, due 2020, with terms and pricing consistent with the Company’s existing term loan.
Pricing for both term loans is LIBOR (subject to a floor of 0.75%) plus an applicable margin of 2.50%, and both term loans carry the same 0.25% interest rate step-down feature.
Wish-Bone is a leading salad dressing brand, holding the No 1 share position in the Italian segment of the category and the No 3 position overall. The portfolio acquired includes a broad range of liquid and dry-mix salad dressing flavours under the Wish-Bone and Western brand names.
Wish-Bone will be consolidated in the company’s Duncan Hines Grocery segment. In making the announcement, Pinnacle reaffirmed its outlook for Wish-Bone to be $0.01-$0.02 accretive to EPS in the fourth quarter of fiscal 2013. In addition, Pinnacle also reaffirmed its consolidated EPS outlook for the full year of $1.53-$1.57.
© FoodBev Media Ltd 2024