PE-backed Pinnacle Foods (NYSE: PF) is being sold to Hillshire Brands (NYSE: HSH) for an estimated $6.6 billion, including debt. Goldman Sachs is committing debt financing for the deal, which will also see The Blackstone Group sell its majority stake. Pinnacle stockholders will receive $18 per share in cash, along with one Hillshire share per two Pinnacle shares. The deal represents an implied premium of around 80% since Pinnacle's IPO in March 2013, and roughly 20% to its closing price on the last trading day prior to the announcement.
Blackstone took Pinnacle Foods private in 2007 for around $2.2 billion. The company, which manages food brands Mrs. Butterworth's, Tim's Cascade Snacks, Duncan Hines, Armour and more, employs around 4,400 people. In March 2013, Pinnacle went public in a $580 million IPO; later, Blackstone whittled down its stake to about 51% by selling 17 million shares, reaping around $438 million. Having invested a total of about $700 million in Pinnacle, Blackstone is rumored to land a 300% partly realized gain from the company's sale.