ConAgra Foods to Sell Spicetec Flavors & Seasonings to Givaudan
May 23 2016 - 4:15PM
Business Wire
ConAgra Foods, Inc. (NYSE: 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 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.
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/20160523006411/en/
ConAgra Foods, Inc.Media:Dan Hare,
402-240-5274daniel.hare@conagrafoods.comorInvestors:Chris
Klinefelter, 402-240-4154chris.klinefelter@conagrafoods.com
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