Following Campbell Soup Company 's announcement of an agreement to buy organic foods company Pacific Foods for $700 million, Credit Suisse said the acquisition makes sense. However, the firm felt the deal has come at a high price and a low margin. The firm indicated that the deal price represented 3.2 times Pacific Foods' trailing 12-month sales of $218 million. Like The Organic Food-Leaning Analyst Robert Moskow said he liked the fact that Campbell has shifted its M&A attention toward an organic-stable category. The analyst thinks the company has significant expertise in the area and can add value rather than packaged fresh category, where it faced so many integration missteps and supply chain problems. "However, with a price tag that exceeds 20x EBITDA for such a low operating margin business (probably single-digit), the acquisition won't provide much in the way of financial benefits nor much help for the stock," Credit Suisse said.Read more