News Release
ConAgra Foods Announces Plans to Separate Into Two Independent Public Companies
Conagra Brands Will be a Diverse Portfolio of
Lamb Weston Will Be a Leading Foodservice Supplier of Frozen Potatoes
Company Plans Tax-Free Distribution of New Publicly Traded Stock in Lamb Weston
“The decision to separate into two pure-play companies reflects our
ongoing commitment to implementing bold changes in order to deliver
sustainable growth and enhanced shareholder value,” said
The two businesses operate in distinct markets and possess unique and
compelling growth prospects and investment requirements. In addition,
- Greater management focus on the distinct businesses of consumer brands and foodservice frozen potato products;
- Increased flexibility, agility and resources to capitalize on their respective long-term opportunities and growth strategies;
- Tailored capital structures and financial policies and targets appropriate for each company’s unique business profile; and
- The ability for investors to value the two companies based on their particular operational and financial characteristics and invest accordingly.
Conagra Brands
Conagra Brands will be comprised primarily of the operations currently
reported as the Company’s
Conagra Brands is also expected to include several businesses currently
reported within the
Conagra Brands’ core strategy will focus on further strengthening its consumer and foodservice portfolios, driving innovation and improving margins. Conagra Brands will remain committed to its plans to optimize operational efficiency to provide additional resources to invest in the business and pursue strategic acquisitions while also returning capital to shareholders. Conagra Brands expects to maintain an investment-grade profile following the separation, and to remain committed to a strong and attractive dividend.
Conagra Brands will be led by CEO
Lamb
Following the separation, Lamb Weston’s portfolio will consist of frozen
potato, sweet potato, appetizer and other vegetable products, as well as
a continued presence in retail frozen products under licensed brands and
private brands. For fiscal 2015, Lamb Weston generated revenues of
approximately
Lamb
Capital structure and capital allocation policy for Lamb Weston have not yet been finalized. The Lamb Weston management team will be announced at a later date.
Separation Details
The separation is expected to be tax-free to
Conference Call
A rebroadcast of the conference call will be available after
About
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on management’s current
expectations and are subject to uncertainty and changes in
circumstances. These risks and uncertainties include, among other
things: ConAgra Foods’ ability to successfully complete the spin-off of
its Lamb Weston business on a tax-free basis, within the expected time
frame or at all; ConAgra Foods’ ability to successfully complete the
pending sale of its private brands operations, within the expected time
frame or at all; ConAgra Foods’ ability to execute its operating and
restructuring plans and achieve its targeted operating efficiencies,
cost-saving initiatives, and trade optimization programs; ConAgra Foods’
ability to successfully execute its long-term value creation strategy;
ConAgra Foods’ ability to realize the synergies and benefits
contemplated by the Ardent Mills joint venture; risks and uncertainties
associated with intangible assets, including any future goodwill or
intangible assets impairment charges; the availability and prices of raw
materials, including any negative effects caused by inflation or weather
conditions; the effectiveness of ConAgra Foods’ product pricing efforts,
whether through pricing actions or changes in promotional strategies;
the ultimate outcome of litigation, including litigation related to the
lead paint and pigment matters; future economic circumstances; industry
conditions; the effectiveness of ConAgra Foods’ hedging activities,
including volatility in commodities that could negatively impact ConAgra
Foods’ derivative positions and, in turn, ConAgra Foods’ earnings; the
success of ConAgra Foods’ innovation and marketing investments; the
competitive environment and related market conditions; the ultimate
impact of any ConAgra Foods’ product recalls; access to capital; actions
of governments and regulatory factors affecting ConAgra Foods’
businesses, including the Patient Protection and Affordable Care Act;
the amount and timing of repurchases of ConAgra Foods’ common stock and
debt, if any; the costs, disruption and diversion of management’s
attention associated with campaigns commenced by activist investors; and
other risks described in ConAgra Foods’ reports filed with the
View source version on businesswire.com: http://www.businesswire.com/news/home/20151118005469/en/
Source:
ConAgra Foods, Inc.
MEDIA:
Jon Harris, 630-857-1440
jon.harris@conagrafoods.com
or
INVESTORS:
Chris
Klinefelter, 402-240-4154
chris.klinefelter@ConAgraFoods.com
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