Conagra Brands Enters Into Agreement to Acquire Sandwich Bros. of Wisconsin® Business
Business features frozen flatbread pocket sandwiches
CHICAGO, Dec. 21, 2017 /PRNewswire/ -- Today Conagra Brands, Inc. (NYSE: CAG) announced that it has entered into a definitive agreement to acquire the Sandwich Bros. of Wisconsin business, which produces frozen breakfast and entrée flatbread sandwiches. The transaction is expected to close in early 2018, subject to customary closing conditions, including the receipt of regulatory approvals.
"Adding the Sandwich Bros. business to our portfolio is another step in Conagra Brands' ongoing work to accelerate growth," said Sean Connolly, president and chief executive officer of Conagra Brands. "This acquisition will bring Conagra unique capabilities and expertise within the frozen handheld category, which we look forward to leveraging for further growth and extension into additional Conagra brands."
Sandwich Bros. flatbread pocket sandwiches offer consumers on-the-go convenience and are filled with proteins such as 100% Angus beef, chicken raised without antibiotics, all natural sausage and real Wisconsin cheese. The family-owned business has seen rapid growth with approximately $60 million in net sales for the twelve months ending November 2017.
"We are extremely proud of what our team has accomplished in a few short years, and look forward to helping Conagra accelerate the growth of Sandwich Bros. products," said Salem Kashou, President of the Sandwich Bros. business and second-generation family member.
"We are very pleased with Conagra's shared enthusiasm of Sandwich Bros. and know they have the resources and expertise to continue our legacy. Our incredible growth over the past five years is attributed to the contributions from our loyal employees, business partners and consumers. For that, my brother John and I express our sincerest gratitude," added George Kashou, founder and co-owner of the business.
McGrath North served as legal counsel to Conagra Brands. Quarles & Brady served as legal counsel and Chapman Partners, LLC served as financial advisor to Sandwich Bros.
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®, Frontera®, Duke's® and Angie's® BOOMCHICKAPOP®, offer choices for every occasion. For more information, visit www.conagrabrands.com.
About Sandwich Bros. of Wisconsin Business
Sandwich Bros. of Wisconsin brand is produced by a family-owned and operated food company founded in Milwaukee, Wisconsin in 1979 by John and George Kashou. In 2012, the brothers introduced a full line of frozen, handheld breakfast and snack sandwiches under the brand name Sandwich Bros. of Wisconsin®. The sandwiches are sold Nationwide to grocery stores, club, convenience and mass merchandisers, in addition to, Foodservice, Military and Private Label customers. Sandwich Bros.' mission is to be a leading manufacturer of hand-crafted sandwiches and specialty breads with continuous improvement, innovation and commitments to provide safe, quality food to their customers and consumers. To learn more about Sandwich Bros. of Wisconsin, visit www.SandwichBros.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 benefits of a potential acquisition of the Sandwich Bros. of Wisconsin business, expectations about future business plans, prospective performance, and opportunities, regulatory approvals, and the expected timing of the completion of the transaction. Readers of this press release should understand that these statements are not guarantees of performance or results. There is no assurance that the pending acquisition of the Sandwich Bros. of Wisconsin business 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: the timing to complete the pending acquisition of the Sandwich Bros. of Wisconsin business; the ability and timing to obtain required regulatory approvals and satisfy other closing conditions for the pending acquisition of the Sandwich Bros. of Wisconsin business; Conagra Brands' ability to achieve the intended benefits of acquisitions and divestitures, including the pending acquisition of the Sandwich Bros. of Wisconsin business, the pending divestiture by Conagra Brands of the Wesson oil business, 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, and its ability to respond to volatility in its commodities; 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 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 press release, which speak only as of the date of this press release. We undertake no responsibility to update these statements.
For more information, please contact:
MEDIA: Kristine Mulford
SOURCE Conagra Brands, Inc.