NEW YORK (The Deal) -- Hillshire Brands said Monday it would acquire Blackstone Group LP-backed Pinnacle Foods Inc., marrying Jimmy Dean sausage with Aunt Jemima syrup in a deal valued at $6.6 billion.
Terms of the deal call for Chicago-based Hillshire to pay $18 in cash and 0.5 shares of its common stock for each share of Pinnacle for total consideration of $36.02 per share, a premium of 18% over Pinnacle's Friday close and 80% above the target's March 2013 initial public offering price. Post-deal Pinnacle shareholders, including majority-owner Blackstone, would own about one-third of the combination.
The agreement values Pinnacle's equity at about $4.23 billion, with Hillshire also set to assume debt as part of the combination. The deal is valued at about 9.6 times adjusted Ebitda, according to the companies.
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