Conagra Brands Enters Into Definitive Agreement With The J.M. Smucker Company To Divest The Wesson® Oil Brand
CHICAGO, May 30, 2017 /PRNewswire/ -- Today Conagra Brands, Inc. (CAG) announced that it has entered into a definitive agreement with The J.M. Smucker Company (JMS) to divest the Wesson oil brand. The transaction is subject to customary closing conditions, including the receipt of any applicable regulatory approvals. The transaction is valued at approximately $285 million.
"We continue to reshape our portfolio and focus our resources on priorities that support Conagra's business strategy and drive value creation for shareholders," said Sean Connolly, president and chief executive officer of Conagra Brands. "We believe The J.M. Smucker Company will be a terrific steward of the Wesson brand."
Wesson is an iconic edible oil in the U.S., with product offerings including vegetable, canola, corn and blended oils. Under the terms of the agreement, Conagra will continue to make the products sold under the Wesson brand and provide certain other transition services for up to one year following the close of the transaction.
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® and Duke's®, 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.
Note on Forward-looking Statement
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 divestiture of the Wesson oil brand, 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 complete a potential divestiture of certain assets related to the Wesson oil brand; the ability and timing to obtain required regulatory approvals and satisfy other closing conditions for the transaction; 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.
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SOURCE Conagra Brands, Inc.