CHICAGO, March 16, 2017 /PRNewswire/ -- Today Conagra
Brands, Inc. (NYSE: CAG) announced that it has entered into a
definitive agreement to acquire protein-based snacking businesses
Thanasi Foods LLC (Thanasi), maker of Duke's® meat snacks, and BIGS
LLC (BIGS), maker of BIGS® seeds. Financial terms were not
disclosed. The transaction is subject to customary closing
conditions, including the receipt of regulatory approval, and is
expected to close summer 2017.
Duke's is a fast-growing premium meat snack brand, with products
including Duke's Smoked Shorty® Sausages and Duke's
Steak & Brisket Strips. Duke's products are made in small
batches with quality ingredients and authentic hardwood smoke
pairings. BIGS produces a line of premium seed snacks,
including jumbo in-shell sunflower seeds, sunflower seed kernels
and roasted pumpkin seeds. BIGS partners with some of America's
most-loved brands to bring big, bold flavor to seeds.
"This is another exciting step in our ongoing efforts to reshape
our portfolio to be more premium and modern," said Sean Connolly, president and chief executive
officer of Conagra Brands. "These on-trend brands extend our meat
snacks and seeds businesses into faster-growing, more premium
segments. We are looking forward to working with the Thanasi team
to grow the brands further and create value for our
shareholders."
Conagra Brands currently manages the Slim Jim® meat stick brand
and the DAVID® Seeds brand.
Justin "Duke" Havlick, Duke's and BIGS founder and chief
executive officer, said, "What started 13 years ago as a simple
passion for fire roasting seeds and slow smoking meats, has grown
into two terrific brands that are recognized in households across
the U.S. This is an incredibly exciting time for our brands and our
team, and we are looking forward to working with the Conagra Brands
team on the next chapter in our journey to take Duke's and BIGS to
another level." Havlick continued, "The Conagra Brands team values
our brand beliefs and is committed to continuing to use quality
ingredients and the craft methods that deliver the creativity and
flavor our consumers and fans love today."
Following the completion of the transaction, the Duke's and BIGS
brands will continue operating out of Boulder, Colorado.
Houlihan Lokey served as
financial advisor and Brownstein Hyatt
Farber Schreck, LLP served as legal counsel to Thanasi Foods
LLC and BIGS LLC. Jones Day served
as legal counsel to Conagra Brands, Inc.
About Conagra Brands
Conagra Brands, Inc. (NYSE:
CAG), headquartered in Chicago, is
one of North America's leading
branded food companies. Guided by an entrepreneurial spirit,
Conagra Brands combines a rich heritage of making great food with a
sharpened focus on innovation. The company's portfolio is
evolving to satisfy people's changing food preferences.
Conagra's iconic brands, such as Marie
Callender's®, Reddi-wip®, Hunt's®, Healthy Choice®, Slim
Jim® and Orville Redenbacher's®, as
well as emerging brands, including Alexia®, Blake's® and Frontera®,
offer choices for every occasion. With an ongoing commitment to
corporate citizenship, Conagra Brands has been named to the Dow
Jones Sustainability™ North America Index for six consecutive
years. For more information, visit
www.conagrabrands.com.
About Duke's Smoked Meats
Thanasi Foods LLC is a
leading maker of premium meat snacks, including Duke's® Smoked
Shorty® Sausages and Duke's Brisket & Steak Strips. Focused on
crafting the highest-quality smoked meat snacks available, the
family-operated business refuses to take shortcuts and is committed
to producing its products in small batches with real, whole
ingredients, fresh never-frozen pork and chicken, 100% grass-fed
beef, and authentic hardwood smoke pairings. For more information,
please visit www.dukesmeats.com.
About BIGS Seeds
Based in Boulder, CO, BIGS® produces a line of premium,
USA-grown seed snacks, including
jumbo, fire-roasted in-shell sunflower seeds, sunflower seed
kernels, and homestyle-roasted pumpkin seeds. BIGS partners
with some of America's most iconic and loved ingredient brands to
bring big, bold flavors to its seeds. For more information, visit
www.BIGS.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. These
forward-looking statements include, among others, statements
regarding expected synergies and benefits of a potential
combination of Conagra Brands and Thanasi and BIGS, expectations
about future business plans, prospective performance and
opportunities, regulatory approvals and the expected timing of the
completion of the transaction. 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. There is no assurance that the potential transaction
will be consummated, and there are a number of risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements made herein. These risks and
uncertainties include: the timing to consummate a potential
transaction between Conagra Brands and Thanasi and BIGS; the
ability and timing to obtain required regulatory approvals and
satisfy other closing conditions; Conagra Brands' ability to
realize the synergies contemplated by a potential transaction;
Conagra Brands' ability to promptly and effectively integrate the
business of Conagra Brands and Thanasi and BIGS; Conagra Brands'
ability to achieve the intended benefits of acquisitions and
divestitures, including the transaction described in this press
release and the recent spin-off of Conagra Brands' Lamb Weston
business; general economic and industry conditions; Conagra Brands'
ability to successfully execute its long-term value creation
strategy; Conagra Brands' ability to access capital; Conagra
Brands' ability to execute its operating and restructuring plans
and achieve its targeted operating efficiencies, cost-saving
initiatives, and trade optimization programs; the effectiveness of
its hedging activities, including volatility in commodities that
could negatively impact its derivative positions and, in turn, its
earnings; the competitive environment and related market
conditions; Conagra Brands' ability to respond to changing consumer
preferences and the success of its 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 Conagra Brands' businesses; 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; the costs, disruption, and diversion of
management's attention associated with campaigns commenced by
activist investors; and other risks described in the reports filed
by Conagra Brands 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.
For more information, please contact:
MEDIA:
Dan Hare
312-549-5355
daniel.hare@conagra.com
INVESTORS: Johan Nystedt
312-549-5002
ir@conagra.com
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SOURCE Conagra Brands, Inc.