Major Players Involved in M&A Activity Last Week

​Last week, a number of Fortune 500 companies either made acquisitions or sold off portions of their business. ConAgra acquired Pinnacle Foods to expand its packaged foods business. GE, amid a selloff of business segments at the firm, sold its gas engine division to private equity firm Advent International. Amazon made a huge splash in the pharmaceutical business with its acquisition of online pharmacy PillPack. AT&T made yet another major deal to modernize its media business with the acquisition of AppNexus. Finally, OnFarm Systems, a farmer-focused data management service, was acquired by SWIIM System.

• On Wednesday, ConAgra (NYSE: CAG) announced plans to acquire Pinnacle Foods (NYSE: PF) for $10.9 billion in cash and stock. Pinnacle is a packaged foods company that includes household names such as Duncan Hines, Vlasic, and Mrs. Buttersworth. The real catch for ConAgra, however, is the frozen foods brand Bird’s Eye. “Building scale in frozen is our top priority… frozen does have, and always had, tailwinds behind it,” said ConAgra Chief Executive Sean Connolly.

• General Electric (NYSE: GE) has announced the sale of its gas engine division to private equity firm Advent International for $3.25 billion. GE has been under pressure to cut costs the last twelve months, prompting an initiative by CEO John Flannery to slim down the company. The gas engine division, which is made up of brands Jenbacher and Waukesha, produces large gas engines that provide power and heat to industrial buildings. This sale comes after GE had sold off a large portion of its healthcare arm and merged its locomotive business.

• Amazon (NASDAQ: AMZN) is buying online pharmacy PillPack for roughly $1 billion, further spreading Amazon’s dominance into other industries besides e-commerce. PillPack, founded in 2013, uses its PharmacyOS system to manage patient data to figure out how to balance meds together in safe doses. PillPack, licensed in all 50 states, lets customers buy their medication in pre-made dosage packages. PillPack’s acquisition by Amazon will allow the firm to better scale their delivery operations.

• AT&T (NYSE: T), to further modernize its communications and media business, announced its buyout of AppNexus for approximately $1.6 billion. AppNexus offers technology that helps advertisers buy digital ads in real-time across a spectrum of websites and apps, all using automated software. The purchase is a part of AT&T’s plans to build a marketplace for TV and video advertising and to help it better compete with media advertising giants Facebook and Google.

• Agricultural software developer OnFarm Systems reached a definitive acquisition agreement with SWIIM System on Tuesday for an undisclosed sum. OnFarm Systems developed a platform that collects data inputs on weather conditions, irrigation, and soil moisture, allowing farmers to make more informed irrigation and farm input decisions.

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• McCarthy Capital, an Omaha-based private equity firm, has bought a majority stake in Colorado salmon smoker Honey Smoked Fish Company. The terms of the deal have not yet been disclosed. Honey Smoked Fish has been around for 24 years and produces several flavors of honey-smoked salmon, which it sells through retail channels and direct-to-consumer on its website. Honey Smoked Fish Company is McCarthy’s first investment in seafood.