Pinnacle, which is based in Parsippany, N.J., and has an office in Cherry Hill, also owns Wish-Bone salad dressings, Celeste frozen pizzas, and Log Cabin syrup.
Hillshire chief executive Sean Connolly said during a conference call with analysts that the deal made sense. "Meats go with vegetables, sandwiches go with pickles," he said.
Dallas buyout firm Hicks, Muse, Tate & Furst paid $370 million for the Vlasic, Swanson, and Open Pit barbecue sauce brands owned by the former Vlasic Foods International Inc.
In 2003, Pinnacle bought Aurora Foods Inc. out of bankruptcy, adding Duncan Hines cake mixes, Log Cabin and Mrs. Butterworth's syrups, Lender's bagels, Aunt Jemima breakfast foods, and Mrs. Paul's - another former Campbell Soup brand - to its cupboard.
The Blackstone Group bought Pinnacle in 2007 for $2.16 billion from another set of private-equity owners. Blackstone took Pinnacle public in March 2013, but still owns 51 percent of the company.
The deal with Hillshire calls for Pinnacle shareholders to receive $18 per share plus half of a Hillshire share for every Pinnacle share they own. Including debt, the deal had an announced value of $6.6 billion.
The sale, which still requires shareholder approval, is expected to close by September. Combined annual revenues are expected to be $6.6 billion.
This article contains information from the Associated Press.