Pinnacle Foods Group LLC, a private equity portfolio company of The Blackstone Group, has completed its previously-announced acquisition of Birds Eye Foods Inc. from a holding company controlled by Vestar Capital Partners, Pro-Fac Cooperative and Birds Eye Foods management. The transaction positions Pinnacle Foods as a leader in both the frozen and shelf-stable business segments.
“Birds Eye Foods represents an ideal strategic fit,” said Bob Gamgort, chief executive officer of Pinnacle Foods. “We look forward to harnessing the power of the combined brand portfolio to better serve our consumers and customers.”
The $1.3 billion acquisition, announced on November 19, was funded via a combination of new debt financing and a significant equity contribution by affiliates of Blackstone. The debt financing consisted of $850 million of senior secured credit facilities arranged by Barclays Capital, BofA Merrill Lynch, Credit Suisse, HSBC and Macquarie Capital and $300 million of new senior unsecured bonds arranged by Credit Suisse, BofA Merrill Lynch, Barclays Capital, HSBC and Macquarie Capital.
Pinnacle Foods was advised by Blackstone Advisory Partners LP, Barclays Capital, BofA Merrill Lynch and Credit Suisse. Birds Eye Foods was advised by Centerview Partners, JP Morgan and UBS. Simpson Thacher & Bartlett LLP acted as legal counsel to Pinnacle Foods. Kirkland & Ellis LLP served as legal counsel to Birds Eye Foods.
About Pinnacle Foods Group LLC and Birds Eye Foods Inc.
Pinnacle Foods, owned by private equity funds controlled by The Blackstone Group, manufactures and distributes iconic, branded packaged foods that can be found in 80% of U.S. households. The company’s diversified portfolio holds the No. 1 or No. 2 position in eight of 11 categories in which it competes and includes well-known brands such as Duncan Hines baking mixes and frostings, Vlasic pickles, peppers and relish, Mrs. Butterworth's and Log Cabin syrups, Armour canned meats, Swanson and Hungry-Man frozen dinners and entrees, Van de Kamp's and Mrs. Paul's frozen seafood, Aunt Jemima frozen breakfast, Lender's bagels and Celeste frozen pizza.
Birds Eye Foods is a nationally recognized packaged food company with more than $930 million of total sales and leading consumer brands in frozen vegetables and meals, including Birds Eye, Birds Eye Steamfresh and Birds Eye Voila!, as well as shelf-stable brands including Comstock and Wilderness pie fillings and toppings, Nalley and Brooks chili and chili ingredients and snacks from Tim’s Cascade Snacks, Snyder of Berlin and Husman.