Conagra Brands is reportedly in advanced talks to buy US peer Pinnacle Foods – and it is said a deal could be announced this week.
Last week, Bloomberg and Reuters both reported the US manufacturers had restarted talks over a possible transaction. Today, CNBC , citing unnamed sources, said the two sides were in advanced negotiations.
Approached by just-food, Conagra had not returned a request for comment at the time of writing, while Pinnacle said: “We do not respond to market speculation.”
The companies, home to brands like Orville Redenbacher’s popcorn and Gardein vegetarian foods, were reported last summer to have been in talks over a deal, although those discussions were said to have broken down over price.
The businesses are major players in the US frozen-food category, with Conagra’s stable including Banquet ready meals and Pinnacle’s portfolio housing Birds Eye.
In April, activist investor Jana Partners acquired just over 9% of Pinnacle and said it would hold talks with the company’s board on “value-creation measures”, which for the fund included “evaluating alternatives to realise [Pinnacle’s] strategic value, including a sale or other consolidation opportunities potentially available to the [company] as a result of its scale position in the frozen foods sector”.