Pinnacle Foods is acquiring Boulder Brands, owner of Glutino® gluten-free products and Earth Balance® vegan foods, in a $975 million deal.
Speaking on the deal, Pinnacle Foods CEO Bob Gamgort said that the acquisition provides the company with “an important health and wellness talent pool in Boulder, Colorado.”
The move is expected to expand Pinnacle’s presence in natural and organic foods, as well as provide a new growth platform in refrigerated foods.
After the announcement was made, Boulder Brands’ stock shot up just over 8% to $10.92. Pinnacle Foods’ shares, on the other hand, decreased to $42.57.
Dean Hollis, Chairman of Boulder Brands, echoed this sentiment, stating, “Together with Pinnacle Foods, Boulder Brands will have additional and stronger resources to drive our brands and deliver value to customers and consumers, while providing new opportunities for employees.”
Annual net sales of Boulder Brands totaled over $500 million in 2014, according to a press release.
Pinnacle Foods says that it will retain Boulder Brands’ headquarters in the same location.
This transaction is subject to customary closing conditions and is expected to be complete in the first quarter of 2016.