The Hillshire Brands Company (NYSE:HSH) agreed to acquire Pinnacle Foods Inc. (NYSE:PF) in a cash and stock deal valued at $6.6 billion, including debt, the two companies said on Monday.

Hillshire, the maker of Jimmy Dean meats, said the acquisition will "create a platform with new revenue opportunities" and expand its reach into the frozen and refrigerated foods  segment with such brands as Hungry-Man and Birds Eye as well as grocery staples such as Duncan Hines baking mixes and Vlasic pickles.

Pinnacle investors will receive $18 in cash and half a share of Hillshire for every Pinnacle share they own.  Excluding debt, the deal is valued at $4.3 billion. The total amount of the purchase price represents a 20 percent premium over Pinnacle's closing share price of $30.45 on Friday.  In midday trading on Monday, the shares rose $4.46, or 14.6 percent, to $34.91.

The combined company will be based in Chicago and will operate under the Hillshire Brands name.  The boards of both companies have approved the deal, which is expected to close in September. The companies said that the deal reflects a multiple of 9.6 times adjusted earnings before interest, taxes, depreciation and amortization.

Hillshire said the acquisition will also position it to take advantage of future expansion opportunities.

“The acquisition creates a leading branded food company with enhanced scale, reach, and capabilities while providing margin expansion and strong [earnings per share] accretion," Hillshire Brands CEO Sean Connolly said.

Pinnacle Foods CEO Bob Gamgort added that the “complementary portfolios and strategic fit of these two companies create significant value for the shareholders of both organizations."