NEW YORK ( TheStreet -- It's a perfect time for Blackstone (BX - Get Report) to unload Pinnacle (PF - Get Report) from its books. Warren Buffet's purchase of Heinz (HNZ) foods has given the food group a seal of approval. Pinnacle may be loaded with debt, but new investors will ignore that stark reality. Sources say the deal is oversubscribed by four or five times.Blackstone purchased Pinnacle in 2007 for $2.16 billion with the plan to make more acquisitions and build the company into a food powerhouse. This was so long ago that Lehman Brothers was the adviser on the deal. The only acquisition ever completed was Birds Eye Foods, purchased for $1.3 billion. Now Blackstone is hoping to raise $667 million from the initial public offering, which basically values Pinnacle at $2.3 billion. Not such a great six-year return.
On the product side, things are pretty positive. Wal-Mart (WMT) accounts for 60% of the sales. The company owns many iconic brands like Mrs. Paul's frozen fish, Aunt Jemima, Birds Eye frozen foods, Lenders Bagels, Duncan Hines and Vlasic pickles. Many of these products have a commanding market share and either rank No. 1 or No. 2 in their respective categories. The brands are familiar and iconic, so that the company is reminiscent of B&G Foods (BGS - Get Report).