ConAgra Foods Announces Record Date and Distribution Date for Spin-off of Lamb Weston Business
October 11 2016 - 7:30AM
Business Wire
ConAgra Foods Board of Directors Approves
Conditional $1.25 Billion Share Repurchase Plan
ConAgra Foods, Inc. (NYSE: CAG) today announced the record and
distribution dates for the spin-off of its Lamb Weston business,
which is expected to be effected through the distribution of
100 percent of the common shares of Lamb Weston to holders of
ConAgra Foods’ common shares:
- Record Date: 5:00 p.m. New York City
time, on Nov. 1, 2016
- Distribution Date: 11:59 p.m., New York
City time, on Nov. 9, 2016
The completion of the distribution remains subject to customary
closing conditions, including the Securities and Exchange
Commission having declared effective Lamb Weston’s Registration
Statement on Form 10.
ConAgra Foods also announced today that its board of directors
approved an increase to its existing share repurchase program,
authorizing $1.25 billion of total expenditures on the program. The
authorization is contingent on the completion of the spin-off of
the Lamb Weston business and has no expiration date. Shares are
expected to be repurchased periodically, depending on market
conditions and other factors, through open-market or privately
negotiated transactions. This authorization is part of a broader
capital allocation strategy that balances debt reduction, a
top-tier dividend, share repurchases and strategic growth
investments.
“Today’s announcement demonstrates continued progress in the
spin-off of the Lamb Weston business as well as ConAgra’s
commitment to creating shareholder value,” said Sean Connolly,
president and chief executive officer of ConAgra Foods. “It is an
exciting time for Lamb Weston and ConAgra Foods.”
ConAgra Foods, Inc. will be renamed Conagra Brands, Inc. upon
completion of the spin-off.
About ConAgra Foods
ConAgra 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 Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. These forward-looking
statements are based on management’s current expectations and are
subject to uncertainty and changes in circumstances. We undertake
no responsibility for updating these statements. Readers of this
press release should understand that these statements are not
guarantees of performance or results. Many factors could affect our
actual financial results and cause them to vary materially from the
expectations contained in the forward-looking statements, including
those set forth in this press release. These risks and
uncertainties include, among other things: our ability to
successfully complete the spin-off of our Lamb Weston business on a
tax-free basis, within the expected time frame or at all, and
achieve the intended benefits of the spin-off; general economic and
industry conditions; our ability to successfully execute our
long-term value creation strategy; our ability to access capital;
our ability to execute our operating and restructuring plans and
achieve our targeted operating efficiencies, cost-saving
initiatives, and trade optimization programs; the effectiveness of
our hedging activities, including volatility in commodities that
could negatively impact our derivative positions and, in turn, our
earnings; the competitive environment and related market
conditions; our ability to respond to changing consumer preferences
and the success of our innovation and marketing investments; the
ultimate impact of any product recalls and litigation, including
litigation related to the lead paint and pigment matters; actions
of governments and regulatory factors affecting our businesses,
including the Patient Protection and Affordable Care Act; the
availability and prices of raw materials, including any negative
effects caused by inflation or weather conditions; risks and
uncertainties associated with intangible assets, including any
future goodwill or intangible assets impairment charges; our
ability to realize the synergies and benefits contemplated by the
Ardent Mills joint venture; the costs, disruption, and diversion of
management’s attention associated with campaigns commenced by
activist investors; and other risks described in our reports filed
from time to time with the Securities and Exchange Commission. We
caution readers not to place undue reliance on any forward-looking
statements included in this press release, which speak only as of
the date of this press release.
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version on businesswire.com: http://www.businesswire.com/news/home/20161011005481/en/
ConAgra Foods, Inc.MEDIA: Mike
Cummins312-549-5257Michael.cummins@conagrafoods.comorINVESTORS:
Johan Nystedt312-549-5002IR@conagrafoods.com
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