Activist Investor, Following Whole Foods Playbook, to Push for Changes at Pinnacle Foods
20 April 2018 - 8:41AM
Dow Jones News
By Maria Armental
Jana Partners LLC has amassed a large stake in Pinnacle Foods
Inc. and lined up possible board nominees in a push to make changes
at the food company.
Jana has been accumulating a stake in Pinnacle for several
quarters, as investors and analysts speculated whether Pinnacle
would consider a sale to a larger packaged-food rival.
The activist investor's move largely mirrors actions it took
last year when it pushed for changes at Whole Foods Market before
its sale to Amazon.com Inc.
Pinnacle shares, which lag the market with a 6% decline this
year, rose 7.8% to $59.50 in after-hours trading.
Jana disclosed a 9.1% "active" stake in Pinnacle in a securities
filing Thursday and said it intended to reach the company's board
and management to discuss actions to improve operations and lower
costs. The investor said it would also push Pinnacle to explore "a
sale or other consolidation opportunities" as a result of its scale
in the frozen-foods sector.
As in the Whole Foods case, Jana is working with Glenn Murphy,
who led the turnaround of Gap Inc. as the retailer's chief
executive, and Diane Dietz, the former marketing officer of Safeway
Inc.
A representative for Pinnacle couldn't be immediately reached
for comment.
The investor is also working with James Lawrence, who had
partnered with Jana in its investment in ConAgra Foods Inc., now
called Conagra Brands Inc.
Pinnacle Foods, which owns well-known brands like Birds Eye
frozen vegetables and Vlasic pickles, has been seen as a candidate
for a deal for years.
In 2014, Pinnacle was nearly bought by Hillshire Brands Co., but
Tyson Foods Inc. swooped in and bought Hillshire, canceling the
Pinnacle deal.
Annie Gasparro contributed to this article.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
April 19, 2018 18:26 ET (22:26 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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