Unilever Sells Wish-Bone Salad Dressings For $580M

LONDONPinnacle Foods, Inc., has entered into a definitive agreement to acquire the Wish-Bone salad dressings business from consumer goods giant Unilever Plc. for $580 million. The transaction, subject to customary closing conditions, is expected to be completed in late third quarter or early fourth quarter 2013.

Wish-Bone's portfolio includes a broad range of liquid and dry-mix salad dressing flavors under the Wish-Bone and Western brand names. Combined annual sales of the brands total approximately $190 million. Pinnacle expects that the attractive margins and high free cash flow conversion of these brands would immediately enhance its margins.

The transaction does not include Unilevers facility in Independence, Missouri at which Wish-Bone and Western brands are currently produced, but the factory will continue to manufacture for Pinnacle Foods under a third-party agreement.

Commenting on the deal, Kees Kruythoff, president of Unilever North America, said: Wish-Bone is an iconic brand and the number-one Italian dressings brand in the US. We believe that the potential of both the Wish-Bone and Western brands can now be more fully realized with Pinnacle Foods. As we continue to shape our portfolio to deliver sustainable growth for Unilever, this change will give us the focus to drive growth behind our core foods portfolio."

"The acquisition of Wish-Bone is a perfect fit with our 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," said Pinnacle Foods CEO Bob Gamgort.