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Pinnacle Foods lets Hillshire out of sale pact

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Posted: Monday, June 30, 2014 5:22 pm | Updated: 12:29 pm, Tue Jul 1, 2014.

NEW YORK (AP) — Pinnacle Foods says it is scrapping its sale to Hillshire Brands, freeing Hillshire to be acquired by Tyson Foods.

Pinnacle, which makes Birds Eye frozen vegetables, Duncan Hines cake mixes and Hungry-Man frozen dinners, says it will get a $163 million breakup payment from Hillshire. The Parsippany, New Jersey, company says it expects about $25 million in one-time costs connected to the scotched sale.

Hillshire Brands Co. agreed to buy Pinnacle Foods for $4.23 billion in May. But Tyson and Pilgrim's Pride went after Hillshire two weeks later, and on June 9, Hillshire accepted Tyson's $7.75 billion offer.

Pinnacle Foods Inc. says it will use the proceeds to reduce its debt.

The company's other brands include Wish-Bone salad dressing, Celeste frozen pizzas and Vlasic pickles.

© 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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