ConAgra To Buy Frozen Breakfast Sandwich Company Odom's
April 17 2012 - 5:12PM
Dow Jones News
ConAgra Foods Inc. (CAG) has agreed to buy Odom's Tennessee
Pride, the second-largest maker of frozen breakfast sandwiches in
the U.S., for an undisclosed amount, continuing an acquisition
spree of smaller food companies.
Odom's has annual sales of more than $190 million and about 750
employees. The company also makes refrigerated breakfast sandwiches
and sausages. The deal, expected to close in the next 45 days, also
includes Odom's headquarters office in Madison, Tenn., and
facilities in Little Rock, Ark., and Dickson, Tenn.
ConAgra sees Odom's products complementing its existing frozen
foods business that includes Banquet and Healthy Choice frozen
meals. ConAgra has been looking to buy food companies that sell
products similar to ones it already sells.
The acquisition is part of ConAgra's strategy to put to use its
cash on hand, which stood at $640 million at the end of its fiscal
third quarter. In addition to buying back shares, ConAgra it
looking also looking to acquire companies that boost its
international footprint or ones that expand its private-label
business.
Odom's is ConAgra's third acquisition in the past year,
following the November purchase of National Pretzel Co., a maker of
private-label pretzels, for $301.9 million, in November, and the
March deal for Del Monte Canada, which sells Del Monte branded
packaged fruit, fruit snacks and vegetables in Canada, for $185
million, plus assumed liabilities.
ConAgra shares were unchanged in late trading. They closed up 1%
Tuesday at $26.12 but are still down 1.1% year-to-date.
-By Paul Ziobro, Dow Jones Newswires; 212-416-2194;
paul.ziobro@dowjones.com
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