Conagra Brands approaches Pinnacle Foods about deal

Bloomberg

Conagra Brands Inc. has approached Pinnacle Foods Inc. about a potential deal that would add popular freezer-aisle brands to its roster at a time when frozen-food
sales are booming, according to people familiar with the matter.
The rival food manufacturers have had contact in recent weeks, said the people, who asked not to be identified as the details aren’t public. Deliberations are at a preliminary stage and there’s no guarantee a deal will be reached, the people said.
Pinnacle shares extended gains, rising as much as 9.2 percent in New York trading. The stock was up 2.6 percent, valuing the company at about $7.9 billion. Conagra shares pared gains to trade little changed at $38.42, for a market value of $15 billion.
A representative for Pinnacle said the company doesn’t respond to market speculation. Conagra declined to comment.
After slumping for years, frozen food has become a bright spot in the grocery store as packaged-food companies struggle to find growth elsewhere.
Even millennials, a generation known for its foodie tastes, are embracing frozen vegetables and meals, which are convenient and less expensive than takeout.
Activist fund Jana has urged Pinnacle to explore a sale after disclosing a 9.5 percent stake in the packaged food maker in April. Jana also has history with Conagra.