ConAgra Foods to Sell JM Swank to Platinum Equity
June 08 2016 - 4:15PM
Business Wire
ConAgra Foods, Inc. (NYSE: 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 FoodsConAgra Foods, Inc. (NYSE: 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 EquityFounded 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 StatementsThis 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160608006422/en/
ConAgra Foods, Inc.Media:Mike Cummins,
630-857-1851michael.cummins@conagrafoods.comorDan Whelan,
310-282-9202dwhelan@platinumequity.comorInvestors:Chris
Klinefelter, 402-240-4154chris.klinefelter@conagrafoods.com
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