Conagra Brands divesting line of shelf-stable products
Conagra Brands is divesting its line of Chef Boyardee shelf-stable products in an agreement with Hometown Food Co., a portfolio company of Brynwood Partners.
The product line includes ready-to-eat pasta meals, according to a news release. The $600 million transaction includes a manufacturing facility in Milton, Pennsylvania, as well as all assets and operations dedicated to Chef Boyardee shelf-stable products with the exception of frozen skillet meals, which will be licensed by Hometown Food Co. to Conagra.
The Chef Boyardee products in the transaction contributed approximately $450 million to Conagra’s fiscal year 2024 net sales, according to the release. The divestiture is subject to customary closing conditions and regulatory approvals. The sale price is $600 million in cash, and the deal is expected to close in the first quarter of Conagra’s fiscal year 2026.
“The Chef Boyardee divestiture marks another milestone in reshaping the Conagra Brands portfolio for better long-term growth, while also paying down debt,” Sean Connolly, Conagra Brands president and CEO, said in the release. “Despite the uncertain external environment, Conagra remains proactive in its pursuit of shareholder-value creation. By deepening our focus on our leading, growth-oriented frozen and healthy-snacking businesses, we continue to build a more focused company with modern consumer brands.”
Conagra, with a portfolio of brands including Birds Eye, Healthy Choice and Marie Callender’s, expects to use the transaction’s net proceeds to pay down debt.
