News Release

ConAgra Foods Completes Sale of Its Gilroy Foods & Flavors Dehydrated and Vegetable Product Operations to Olam International

OMAHA, Neb., Jul 19, 2010 (BUSINESS WIRE) --

ConAgra Foods, Inc., (NYSE: CAG) announced today the completion of the sale of its Gilroy Foods & FlavorsTM dehydrated and vegetable product operations to Olam International for before-tax proceeds of $250 million in cash, net of transaction costs and subject to post-closing adjustments. The seasoning blends and flavors business and supporting plant operations were not part of the sale and remain with ConAgra Foods' Commercial Foods reporting segment.

Under the terms of the agreement, ConAgra Foods sold substantially all of the assets of Gilroy Foods & Flavors' dehydrated garlic, onion, capsicum and Controlled MoistureTM, GardenFrost(R), Redi-MadeTM, and fresh vegetable operations, all of which were part of the Commercial Foods reporting segment. Sales for those operations were approximately $300 million in fiscal 2010.

Additional details of the completed transaction include:

  • Manufacturing facilities sold to Olam include: Gilroy, Hanford and Modesto, Calif.; Fernley, Nev.; Las Cruces, N.M.; and Umatilla, Ore. A warehouse in King City, Calif., also was included in the sale.
  • A total of approximately 1,500 employees transitioned to Olam, including plant employees and those supporting the dehydrated and vegetable products business located at the Omaha, Neb., headquarters and other satellite locations for Gilroy Foods.
  • Manufacturing facilities that were not sold to Olam consist of the Carol Stream, Ill., Cranbury, N.J., and Hyrum, Utah, locations which produce seasoning blends and flavors. ConAgra Foods maintains full ownership of these plants and operations continue as usual within the Commercial Foods reporting segment.
  • Greg Estep, formerly president of the divested business for ConAgra Foods, is now president of spices and dehydrates for Olam International.
  • Paul Maass, president of ConAgra Mills, assumed the additional responsibility of leading the remaining seasoning blends and flavors business under the Spicetec(R)Flavors & Seasonings brand name.

ConAgra Foods has reclassified the financial results for the divested operations from continuing operations into discontinued operations for current and historical periods.

Olam International is a leading global integrated supply chain manager and processor of agricultural products and food ingredients, sourcing 20 products with a direct presence in 64 countries and supplying them to more than 10,600 customers. With direct sourcing and processing in most major producing countries for its various products, Olam has built a global leadership position in many of its businesses, including cocoa, coffee, cashew, sesame, rice, cotton and wood products. Headquartered in Singapore and listed on the SGX-ST on Feb. 11, 2005, Olam currently ranks among the top 40 largest listed companies in Singapore in terms of market capitalization and is a component stock in the Straits Times Index (STI), MSCI Singapore Free, S&P Agribusiness Index and the DAXglobal Agribusiness Index. More information on Olam can be found at www.olamonline.com.

ConAgra Foods, Inc., (NYSE: CAG) is one of North America's leading food companies, with brands in 96 percent of America's households. Consumers find Banquet, Chef Boyardee, Egg Beaters, Healthy Choice, Hebrew National, Hunt's, Marie Callender's, Orville Redenbacher's, PAM, Peter Pan, Reddi-wip and many ConAgra Foods brands in grocery, convenience, mass merchandise and club stores. ConAgra Foods also has a strong business-to-business presence, supplying potato, other vegetable, spice and grain products to a variety of well-known restaurants, foodservice operators and commercial customers. For more information, please visit us at www.conagrafoods.com.

Note on forward-looking statements:

This release contains forward-looking statements. These statements are based on management's current views and assumptions of future events and financial performance and are subject to uncertainty and changes in circumstances. The company undertakes no responsibility for updating these statements. Readers of this release should understand that these statements are not guarantees of performance or results. Many factors could affect the company's actual financial results and cause them to vary materially from the expectations contained in the forward-looking statements. These factors include, among other things: availability and prices of raw materials; the impact of the accident at the Garner, N.C., manufacturing facility, including the ultimate costs incurred and the amounts received under insurance policies; product pricing; future economic circumstances; industry conditions; the company's ability to execute its operating plans; the success of the company's innovation, marketing, and cost-saving initiatives; the competitive environment and related market conditions; operating efficiencies; the ultimate impact of the company's recalls; access to capital; actions of governments and regulatory factors affecting the company's businesses, including the Patient Protection and Affordable Care Act; the amount and timing of repurchases of the company's common stock, if any; and other risks described in the company's reports filed with the Securities and Exchange Commission. The company cautions readers not to place undue reliance on any forward-looking statements included in this release, which speak only as of the date made.

SOURCE: ConAgra Foods, Inc.

ConAgra Foods
Media:
Jeff Mochal, 402-240-7825
Director, Corporate Communication
or
Analysts:
Chris Klinefelter, 402-240-4154
Vice President, Investor Relations