News Release
ConAgra Foods Completes Sale of Private Label Operations to TreeHouse Foods
“The sale of the private label business to
Under the terms of the agreement,
Additional details of the completed transaction include:
-
Effective today, a total of approximately 9,500 employees transitioned
to
TreeHouse Foods , including plant employees and those supporting the private label business located at theSt. Louis, Mo. ,Downers Grove, Ill. , andOmaha, Neb. , office locations. -
Certain private label operations with a strong connection to ConAgra
Foods’ existing
Consumer Foods business were not part of the sale, specifically canned pasta, cooking spray, peanut butter, pudding/gels, Gelit frozen pasta product offerings, as well as the HK Anderson and Kangaroo brand equities, trademarks and business portfolios. Results for these operations, which were not material, were moved to theConsumer Foods reporting segment in the first quarter of fiscal 2016. -
ConAgra Foods generated approximately$2.7 billion in cash proceeds from the sale, less transaction expenses, and intends to utilize the net proceeds primarily for debt reduction. -
The company expects the transaction to result in a tax asset of
approximately
$1.6 billion , which can be used to offset potential future capital gains over the next five years.
About
Note on 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 spinoff of its Lamb Weston business on a
tax-free basis 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/20160201006282/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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