Boulder Brands Inc (BDBD) to be Acquired by Pinnacle Foods in $975 Million Deal

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This morning it was announced that Pinnacle Foods Inc. would be acquiring Boulder Brands Inc (NASDAQ:BDBD) in a deal that is valued at $975 million. This includes approximately $265 million in debt on Boulder’s balance sheet. Pinnacle will be paying $11 per share for the company as a part of this deal that should increase earnings next year. The deal will close in the first quarter of 2016.

Boulder Brands had $500 million in sales last year and owns a variety of wellness and health brands such as Glutino and Udi’s.The stock is up 8.49% or $0.86 after the positive news, hitting $10.93 per share. About 21.78M shares traded hands or 4234.41% up from the average. BDBD has declined 1.18% since April 22, 2015 and is downtrending. It has underperformed by 0.16% the S&P500.

Out of 5 analysts covering Boulder Brands (NASDAQ:BDBD), 2 rate it “Buy”, 0 “Sell”, while 3 “Hold”. This means 40% are positive. $13 is the highest target while $8 is the lowest. The $9.70 average target is -11.25% below today’s ($10.93) stock price. Boulder Brands was the topic in 7 analyst reports since August 7, 2015 according to StockzIntelligence Inc. Wunderlich initiated the stock on November 18 with “Buy” rating. RBC Capital Markets maintained the shares of BDBD in a report on August 7 with “Outperform” rating.

The institutional sentiment decreased to 0.83 in Q2 2015. Its down 0.45, from 1.28 in 2015Q1. The ratio turned negative, as 30 funds sold all Boulder Brands Inc shares owned while 47 reduced positions. 24 funds bought stakes while 40 increased positions. They now own 61.79 million shares or 5.32% more from 58.67 million shares in 2015Q1.

Engaged Capital Llc holds 12.06% of its portfolio in Boulder Brands Inc for 3.02 million shares. Springowl Associates Llc owns 110,000 shares or 2.77% of their US portfolio. Moreover, Adirondack Research & Management Inc. has 1.15% invested in the company for 450,166 shares. The New York-based Trellus Management Company Llc has invested 0.98% in the stock. Lapides Asset Management Llc, a Connecticut-based fund reported 779,100 shares.

Boulder Brands, Inc. is a natural consumer packaged food company. The company has a market cap of $657.08 million. The Company’s health and wellness platform consists of brands that target specific health trends: the Glutino Food Group and Udi’s Healthy Foods, LLC’s Gluten Free brands for gluten free diets; the Earth Balance brand for plant diets; the Level Life brand for diabetic diets; EVOL Food branded foods for clients seeking convenient foods made with pure and simple ingredients, and the Smart Balance brand for heart healthier diets. It has 1117.08 P/E ratio. The Firm distributes its products in all retail channels, including natural, grocery, club and mass merchandise.

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