ConAgra Foods, Inc. CAG today announced it has entered into a definitive agreement to sell its Spicetec Flavors & Seasonings business to Givaudan for approximately $340 million.
Sean Connolly, president and chief executive officer of ConAgra Foods, said, "We are committed to becoming a more focused and higher performing company in order to drive greater shareholder value. Divesting Spicetec is the latest action we have taken that will allow ConAgra Foods to invest resources into our core product portfolio to drive sustainable growth." He added, "We truly appreciate the contributions of the Spicetec employees and look forward to having an ongoing relationship with them as a key supplier to ConAgra Foods."
The agreement includes the transition of approximately 280 employees as well as facilities in Cranbury, N.J., and Carol Stream, Ill. The planned transaction is subject to customary closing conditions and regulatory clearances and is expected to close in approximately 60-90 days.
BofA Merrill Lynch acted as the exclusive financial advisor to ConAgra Foods on the transaction.
About ConAgra Foods
ConAgra Foods, Inc. CAG is one
of North America's leading packaged food companies with recognized
brands such as Marie Callender's®, Healthy Choice®, Slim
Jim®, Hebrew National®, Orville Redenbacher's®, Peter
Pan®, Reddi-wip®, PAM®, Snack Pack®, Banquet®,
Chef Boyardee®, Egg Beaters®, Hunt's® and many
other ConAgra Foods brands found in grocery, convenience, mass
merchandise and club stores. ConAgra Foods also has a strong
business-to-business presence, supplying frozen potato and sweet potato
products as well as other vegetable, spice and grain products to a
variety of well-known restaurants, foodservice operators and commercial
customers. For more information, please visit us at www.conagrafoods.com.
Note on Forward-looking Statements
This press release
contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are based on management's current expectations and are
subject to uncertainty and changes in circumstances. These risks and
uncertainties include, among other things: ConAgra Foods' ability to
successfully complete the spin-off of its Lamb Weston business on a
tax-free basis, within the expected time frame or at all; ConAgra Foods'
ability to execute its operating and restructuring plans and achieve its
targeted operating efficiencies, cost-saving initiatives, and trade
optimization programs; ConAgra Foods' ability to successfully execute
its long-term value creation strategy; ConAgra Foods' ability to realize
the synergies and benefits contemplated by the Ardent Mills joint
venture; risks and uncertainties associated with intangible assets,
including any future goodwill or intangible assets impairment charges;
the availability and prices of raw materials, including any negative
effects caused by inflation or weather conditions; the effectiveness of
ConAgra Foods' product pricing efforts, whether through pricing actions
or changes in promotional strategies; the ultimate outcome of
litigation, including litigation related to the lead paint and pigment
matters and the accident at its former Garner plant; future economic
circumstances; industry conditions; the effectiveness of ConAgra Foods'
hedging activities, including volatility in commodities that could
negatively impact ConAgra Foods' derivative positions and, in turn,
ConAgra Foods' earnings; the success of ConAgra Foods' innovation and
marketing investments; the competitive environment and related market
conditions; the ultimate impact of any ConAgra Foods' product recalls;
access to capital; actions of governments and regulatory factors
affecting ConAgra Foods' businesses, including the Patient Protection
and Affordable Care Act; the amount and timing of repurchases of ConAgra
Foods' common stock and debt, if any; the costs, disruption and
diversion of management's attention associated with campaigns commenced
by activist investors; and other risks described in ConAgra Foods'
reports filed with the Securities and Exchange Commission, including its
most recent annual report on Form 10-K and subsequent reports on Forms
10-Q and 8-K. Investors and security holders are cautioned not to place
undue reliance on these forward-looking statements, which speak only as
of the date they are made. ConAgra Foods disclaims any obligation to
update or revise statements contained in this press release to reflect
future events or circumstances or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160523006411/en/
ConAgra Foods, Inc.
Media:
Dan Hare, 402-240-5274
daniel.hare@conagrafoods.com
or
Investors:
Chris
Klinefelter, 402-240-4154
chris.klinefelter@conagrafoods.com
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