ConAgra to sell refrigerated meats businesses to Smithfield Foods for $575 million
August 7, 2006
Business Wire reports that ConAgra Foods, Inc. has signed a definitive agreement to sell its refrigerated meats businesses to Smithfield Foods. Under the agreement, ConAgra Foods will receive $475 million in cash, subject to adjustments in working capital, and $100 million in Smithfield Foods stock not subject to any sale restrictions, less transaction costs. The sale includes the Butterball, Eckrich, Armour, LunchMakers, Margherita, and Longmont brands, as well as most of the associated assets including plants and inventory. The combined annual sales for the refrigerated meats businesses are about $1.8 billion; results for these businesses are classified as discontinued operations. Products are sold to retailer grocers, delis, restaurants and other food service establishments. The transaction is subject to Hart-Scott-Rodino antitrust clearance and other customary closing conditions. The transaction is expected to be completed during Smithfield''s fiscal second quarter which ends October 30, 2006.