ConAgra Brands (NYSE:CAG)
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6 Months : From Aug 2019 to Feb 2020
CHICAGO, Sept. 11, 2019 /PRNewswire/ -- Today Conagra Brands, Inc. (CAG) announced that it has entered into a definitive agreement to sell its Direct Store Delivery (DSD) snacks business to Utz Quality Foods, LLC. The sale includes the Tim's® Cascade Snacks, Hawaiian® Snacks, Erin's®, Snyder® of Berlin and Husman's® brands. Conagra Brands acquired the DSD snacks business in October 2018 as part of its acquisition of Pinnacle Foods. The transaction is subject to customary closing conditions and is expected to be completed before the end of the calendar year. Financial terms were not disclosed.
"We continue to reshape our portfolio and focus our resources on priorities that support Conagra's business strategy and create value for shareholders," said Sean Connolly, president and chief executive officer of Conagra Brands. "While Conagra has a large and growing snacks business, we do not currently operate with a DSD model. We believe this business will have more opportunity for growth under Utz, an established DSD operator."
"We are excited about the opportunity to add these important brands and capabilities to our portfolio," said Dylan Lissette, chief executive officer of Utz. "These brands bring a strong consumer following and unique craft heritage. Their distribution and manufacturing capabilities, along with their customer relationships, enhance our ability to further grow our brand portfolio further west."
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 Birds Eye®, Marie Callender's®, Banquet®, Healthy Choice®, Slim Jim®, Reddi-wip®, and Vlasic®, as well as emerging brands, including Angie's® BOOMCHICKAPOP®, Duke's®, Earth Balance®, Gardein®, and Frontera®, offer choices for every occasion. For more information, visit www.conagrabrands.com.
About Utz Quality Foods, LLC
Founded in 1921, Utz Quality Foods, LLC. is the largest family‐managed, privately held, salty snack company in the United States, producing a full line of products including potato chips, pretzels, cheese snacks, corn chips, tortillas, veggie stix/straws, popcorn, onion rings, pork skins and more. Its brands, which include Utz®, Golden Flake®, Zapp's®, Dirty® Potato Chips, Good Health®, Bachman®, Bachman Jax®, Wachusett®, Snikiddy®, and Boulder Canyon®, among others, are distributed nationally and internationally through grocery, mass‐ merchant, club stores, convenience stores, drug stores and other channels. Based in Hanover, Pennsylvania, Utz operates eleven manufacturing facilities located in Pennsylvania, Alabama, Arizona, Indiana, Louisiana and Massachusetts as well as 1500+ DSD routes. For information about Utz® or its products, please visit www.utzsnacks.com or call 1‐800‐FOR‐SNAX.
Note on Forward-looking Statement
This document 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 benefits and timing of a potential divestiture of the DSD snacks business and expectations about future business plans, prospective performance and opportunities. Readers of this document 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, among other things: risks related to the timing to complete a potential divestiture of the DSD snacks business; risks related to the ability and timing to obtain required regulatory approvals and satisfy other closing conditions for the divestiture of the DSD snacks business; risks related to our ability to achieve the intended benefits of acquisitions and divestitures, including the divestiture of the DSD snacks business and the 2018 acquisition of Pinnacle Foods; and other risks described in Conagra Brands' 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 document, which speak only as of the date of this document. We undertake no responsibility to update these statements, except as required by law.
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SOURCE Conagra Brands, Inc.