Categories: U.S. Investing

Investors Earn 20 Percent for Adding Cake and Pickles to Breakfast

Investors Earn 20 Percent for Adding Cake and Pickles to Breakfast (Bloomberg)

With food prices expected to rise again this year, aggressive companies in the sector are looking for smaller businesses to gobble up, and thereby take a bigger bite out of your paycheck. Hillshire Brands Co. (HSH) is one of those aggressive sorts and is about to devour Pinnacle Foods Inc. for about $6.6 billion. Once purchased, Pinnacle’s product line will add Duncan Hines baking mixes and Vlasic pickles to Hillshire’s line of breakfast-meat products. HSH will pay about $18 per share (plus a half-share of Hillshire stock) for each share of Pinnacle. In the end, HSH ends up paying a 20% premium for Pinnacle shares. And investors now have the chance to add cake and pickles to their breakfast menus.

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.