US food manufacturer ConAgra Foods has announced plans to split its business into two independent public companies.
According to the firm, the spin-off company Lamb Weston will contain the foodservice portfolio of frozen potato, appetizer and other vegetable products, whilst Conagra Brands, Inc. (Conagra Brands) will comprise the diverse consumer brands portfolio.
Sean Connolly, president and chief executive officer of ConAgra Foods said: “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”.
The announcement comes after the company confirmed the disposal of its Ralcorp private label operations to TreeHouse Foods earlier this month, commenting that the move would create “a focused, higher-margin, more contemporary and higher-performing company” that could focus its resources on its Consumer Foods and Commercial Foods segments.
ConAgra’s Consumer Foods division consists of leading brands such as Marie Callender’s, Hunt’s, RO*TEL, Reddi-wip, Slim Jim, PAM, Chef Boyardee, Orville Redenbacher’s, P.F. Chang’s and Healthy Choice.
Lamb Weston is a leading global provider of frozen potato products and has interests in various joint ventures including Lamb Weston / Meijer Europe, which are expected to remain in operation after the spin-off.
The transaction is expected to be completed by Q3 2016.
Source: ConAgra Foods / Reuters