Hillshire to buy Pinnacle Foods for $6.6B

Packaged food company Hillshire Brands said it would acquire Pinnacle Foods Inc. for about $6.6 billion, including debt, in a cash and stock deal.

The acquisition price represents an 18 percent premium on Pinnacle's May 9 closing price.

"The combination of Hillshire Brands and Pinnacle Foods brings together two highly complementary organizations with strong brands, skilled employees and lean cost structures," said Sean Connolly, president and CEO of Hillshire Brands, in a news release. "The new Hillshire Brands will have a strengthened position in frozen foods, new opportunities in the center store for our brands and in refrigerated for Pinnacle Foods’ brands.”

Combined, the companies expect to have about $6.6 billion in annual sales and will have leading positions in key frozen, refrigerated and center of store grocery categories, according to the Chicago Tribune.

Read more from the Chicago Tribune.