7 Stocks Jim Cramer Sees Ripe for Takeover

NEW YORK (TheStreet) -- Slow growth at a number of consumer companies leaves them with just one option: Buy a competitor.

TheStreet's Jim Cramer singles out Coca-Cola  (KO), Kellogg's (K) and General Mills (GIS) as three companies that should be on the prowl for acquisitions. Among the targets: Hain Celestial Group (HAIN), Kraft Foods (KRFT), Mondelez International  (MDLZ) and B&G Foods (BGS).

But who would buy whom? To see Cramer's logic and for more names, check out the companies listed below. 

Hain Celestial 

Hain Celestial in Lake Success, N.Y. specializes in organic and natural products. Annual revenue has grown by almost 15% a year in the last three years, according to data compiled by Bloomberg. The company is due to report earnings for its fiscal year and fourth quarter ended June 30 on August 20.

The stock has traded between $72 and $98 a share in the last 52 weeks, according to data on TheStreet; it's lately traded at over $86 a share. Market cap stands at $4.24 billion.

Cramer says Campbell, General Mills or Kellogg would make a good suitor for Hain.


Kraft Foods

Kraft Foods, based in Northfield, Ill., recorded $18.2 billion revenue in 2013, according to data compiled by Bloomberg. Spun off from Kraft itself on Oct. 1,  2012, the company of 22,500 employees remains focused on cheese, beverages and convenience meals. 

Kraft shares have traded between $50 and $61 in the last 52 weeks, according to data on TheStreet; the company has a market cap of $33.32 billion. Shares have recently traded just over $56 a share.

Coca-Cola would make a great partner for Kraft, merging a slow growing soda company with a food company, says Cramer. The strategy mimics that of PepsiCo (PEP), which owns Frito-Lay, the chips and snacks company.



Mondelez International

The former international group of Kraft, Mondelez International in Deerfield, Ill., is headed by Irene B. Rosenfeld and has 107,00 employees, according to data compiled by Bloomberg. Most of its sales are in Europe.

Shares have traded between $30 and $39 each in the last 52 weeks, according to data on TheStreet. Market cap stands at $60.14 billion. The stock has lately traded at $35.80 a share.

This is another food company that could be targeted by Atlanta-based Coca-Cola, according to Cramer.


B&G Foods

You may never have heard of B&G Foods, based in Parsipanny, N.J., but if you buy maple syrup, vinegar or salsa, you may have consumed its products. Revenue has grown 8.15% a year over the last three years, according to data compiled by Bloomberg.

B&G shares have traded between $27 and $37 in the last 52 weeks, according to data on TheStreet. Market cap stands at $1.55 billion. The stock has lately traded at over $28 a share.

B&G would be a great acquisition for Kellogg, according to Cramer.

Pinnacle Foods

Based in Parsippany, N.J., Pinnacle Foods  (PF) sells well-known brands such as Duncan Hines, Vlasic and Birds Eye. 

Its shares have traded between about $25 and $35 in the last 52 weeks, according to data on TheStreet; market cap stands at $3.63 bilion. The stock has recently traded at about $31 a share.

Kellogg or General Mills would be a good buyer of Pinnacle, says Cramer.



WhiteWave Foods

WhiteWave Foods, (WWAV) another consumer packaged food company, makes and markets plant-based foods in North America and Europe. Based in Denver, the company employs 3,900, according to data on TheStreet.

Shares have traded between $18 and about $33 in the last 52 weeks, according to data on TheStreet. Market cap is $5.65 billion. The stock has recently traded at just above $32 a share. 

General Mills could target WhiteWave, according to Cramer.

SuperValu

SuperValu (SVU), based in Eden Prairie, Minn., is a chain of supermarkets and pharmacies. It also runs a wholesale food distributor.

Shares of the company have traded between $5.38 and $9.64 in the last 52 weeks, according to data on TheStreet. Market cap stands at $2.45 billion. The stock has recently traded at close to $9.54. Investor Leon Cooperman said the stock should trade at about $11, according to CNBC.

Cramer doesn't name a particular buyer; but with the retailing segment in disarray, consolidation seems inevitable. The chain could be a target for any company seeking to grow bigger.

This article was written by a staff member of TheStreet.

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