The acquisition, subject to customary closing conditions, is expected to be completed in late Q3 or early Q4 2013.
Wish-Bone is a salad dressing brand, holding the no 1 share position in the Italian segment of the category and the no 3 position overall.
The portfolio being acquired includes a range of liquid and dry-mix salad dressing flavours under the Wish-Bone and Western brand names. The brands have attractive margins and high free cash flow conversion and are expected to immediately enhance Pinnacle margins.
Combined annual sales of the brands being acquired total approximately $190m.
The purchase price of the transaction is $580m, which will be funded with cash on hand and new debt.
Commenting on the announcement, Pinnacle Foods CEO Bob Gamgort said: “The acquisition of Wish-Bone is a perfect fit with our successful strategy of ‘Reinvigorating Iconic Brands’. In addition to enabling significant cost synergies and tax benefits, the transaction enhances our ability to offer consumers meal solutions and recipe ideas across our broad portfolio of brands. We are excited to apply our innovation capabilities to this great brand.”
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