ConAgra Foods, Inc. CAG and Platinum Equity, a California-based private equity firm, today announced that they have entered into a definitive agreement for Platinum Equity to acquire ConAgra Foods' JM Swank business, a national food ingredient sourcing and distribution company. Terms of the deal were not announced.
"Our goal continues to be driving greater shareholder value by making ConAgra Foods a more focused and higher performing company," said Sean Connolly, president and chief executive officer of ConAgra Foods. "The divestiture of JM Swank is the most recent step we have taken to allow us to drive growth by continuing to invest in our product portfolio."
Platinum Equity CEO Tom Gores said that he expects strong collaboration with ConAgra Foods and his firm's expertise in corporate divestitures to help ensure a seamless transition.
"We are proud of the relationship we've developed with ConAgra Foods and look forward to working together throughout the transition and beyond," said Gores. "JM Swank is a leader in its industry and our team is excited to partner with management to help drive growth and create new value."
Gores added, "Complex carve outs require experience, hard work and attention to detail. We have been providing divestiture solutions to corporate sellers for more than 20 years and understand what it takes to be successful."
Transactions Platinum Equity has completed in recent years include acquisitions from AP Moeller Maersk, Bemis Company, CBS, Deutsche Post DHL, Emerson, Itochu Corporation and Volvo.
Connolly said that he expects JM Swank to continue to be an important ConAgra Foods supplier and customer following the completion of the transaction.
Connolly added, "I'd also like to thank the JM Swank team for all of their many contributions to ConAgra Foods and wish them well in the future."
Wells Fargo Securities, LLC served as 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.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum
Equity is a global investment firm with a portfolio of approximately 25
operating companies that serve customers around the world. Platinum
Equity specializes in mergers and operations – a trademarked strategy it
calls M&A&O® - acquiring and operating companies in a broad range of
business markets, including manufacturing, distribution, transportation
and logistics, equipment rental, metals services, media and
entertainment, technology, telecommunications and other industries. Over
the past 20 years, Platinum Equity has completed more than 175
acquisitions.
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/20160608006422/en/
ConAgra Foods, Inc.
Media:
Mike Cummins, 630-857-1851
michael.cummins@conagrafoods.com
or
Dan
Whelan, 310-282-9202
dwhelan@platinumequity.com
or
Investors:
Chris
Klinefelter, 402-240-4154
chris.klinefelter@conagrafoods.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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