Aurora proposes merger with Pinnacle Foods

St Louis MO-based Aurora Foods Inc, a marketer of frozen food brands, has revised its previously announced financial restructuring. Aurora's agreement
St Louis MO-based Aurora Foods Inc, a marketer of frozen food brands, has revised its previously announced financial restructuring. Aurora's agreement with J W Childs Equity Partners III (JWC) will be amended to provide for a restructuring in which Aurora will be combined with Pinnacle Foods Corp. Upon completion of the combination, C Dean Metropoulos, chief executive officer of Pinnacle, will serve as chairman and CEO of the Pinnacle/Aurora business.

To execute this revision, Aurora has entered into a letter of intent with J P Morgan Partners (JPMP), JWC, an informal committee of bondholders representing about 50% of the company's outstanding senior subordinated notes, and C Dean Metropoulos and Co (CDM).

The transaction is subject to conditions including consummation of the acquisition of Pinnacle by the investment entity to be owned by JPMP, JWC, and CDM; completion of due diligence; execution of definitive agreements; receipt of financing; bankruptcy court approvals; and regulatory approvals.

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