Pinnacle Foods has completed the acquisition of Wish-Bone and Western dressings brands from Unilever for $575m in cash.
Subject to a customary post-closing inventory adjustment, the deal was financed through a combination of cash on hand and new debt of $525m, due 2020, with terms and pricing consistent with the company's existing term loan.
The acquisition included a wide range of liquid and dry-mix salad dressing flavors under the Wish-Bone and Western brand names, which will be consolidated in the Pinnacle Foods' Duncan Hines Grocery segment.
The company reaffirmed its outlook for Wish-Bone to be $0.01-$0.02 accretive to EPS in the fourth quarter of 2013 and expects consolidated EPS for the full year between $1.53 and $1.57.
In August, Pinnacle Foods agreed to acquire Wish-Bone and Western dressings brands from Unilever.
At that time, Pinnacle Foods chief executive officer Bob Gamgort said that the acquisition of Wish-Bone is a perfect fit with the company's successful strategy of 'Reinvigorating Iconic Brands.'
"In addition to enabling significant cost synergies and tax benefits, the transaction enhances our ability to offer consumers meal solutions and recipe ideas across our broad portfolio of brands. We are excited to apply our innovation capabilities to this great brand," Gamgort added.
