Source: Michael Fielding, MEATINGPLACE, 11/2/15


ConAgra Foods, Inc. has reached a definitive agreement to sell its private label operations to TreeHouse Foods for approximately $2.7 billion in cash, excluding transaction-related expenses.

“The sale of our private label business marks another important milestone as we remake ConAgra Foods into a focused, higher-margin, more contemporary and higher-performing company,” Sean Connolly, president and chief executive officer of ConAgra Foods, said in a news release. “This transaction will enable ConAgra to sharpen our focus and resources on our Consumer Foods and Commercial Foods segments as we continue to move quickly to drive sustainable growth and deliver enhanced shareholder value.”

Under the terms of the agreement, ConAgra Foods will divest the vast majority of its private label operations, which are classified as discontinued operations. Among other assets, this includes a network of 32 manufacturing facilities in the United States, Canada and Italy.

ConAgra Foods will retain certain private label operations with a strong connection to its existing Consumer Foods business, specifically canned pasta, cooking spray, peanut butter, pudding/gels, Gelit frozen pasta product offerings, as well as the HK Anderson and Kangaroo brand equity, trademark and business portfolios; the results for those operations, which were not material, were moved to the Consumer Foods reporting segment in the first quarter of fiscal 2016.

The company expects to generate approximately $2.7 billion in proceeds from the sale, less transaction expenses, and it intends to utilize the net proceeds primarily for debt reduction.

The transaction is subject to customary closing conditions and regulatory clearances and is expected to close in the first quarter of calendar year 2016.

ConAgra’s protein-related branded product lines include Slim Jim, Hebrew National, Banquet, Marie Callender’s and Healthy Choice.

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