NEW YORK (TheStreet) -- Pinnacle Foods (PF) soared to a one-year high of $35.67 on Monday amid news that Hillshire Brands (HSH) would acquire all outstanding shares of the company for approximately $4.3 billion.
Each share of Pinnacle Foods common stock will be exchanged for $18 in cash and 0.5 shares of Hillshire Brands common stock under the terms of the agreement.
The stock closed up 13.09%, or $4.01, to $34.44 on Monday. More than 23 million shares changed hands, which dwarfed the average volume of 402,179.
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Separately, TheStreet Ratings team rates PINNACLE FOODS INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate PINNACLE FOODS INC (PF) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: