New York • Pinnacle Foods said Monday it has scrapped its sale to Hillshire Brands, freeing Hillshire to be acquired by Tyson Foods.
Pinnacle Foods, which makes Birds Eye frozen vegetables, Duncan Hines cake mixes and Hungry-Man frozen dinners, said it will get a $163 million breakup payment from Hillshire. The Parsippany, New Jersey, company said it expects about $25 million in one-time costs connected to the scotched sale.
Chicago-based Hillshire Brands Co. agreed to buy Pinnacle Foods for $4.23 billion in May. But Tyson and Pilgrim's Pride went after Hillshire two weeks later, and on June 9, Hillshire accepted Tyson's $7.75 billion offer.