Omaha / NE. (caf) ConAgra Foods Inc. announced that it has reached an agreement to sell its Gilroy Foods + Flavors dehydrated and vegetable product operations to Olam International for 250 million USD, subject to final working capital adjustments. The seasoning blends and flavors business and supporting plant operations will remain with ConAgra Foods´ Commercial Foods reporting segment following the transaction closing.
Under the terms of the agreement, ConAgra Foods will sell 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 are part of the Commercial Foods reporting segment. Sales for those operations were approximately 300 million USD in fiscal 2010. The transaction is expected to close within 30 to 60 days subject to satisfaction of customary closing conditions, including normal regulatory approvals, with ConAgra Foods continuing to operate the business until that time.
«This announcement is part of ConAgra Foods´ ongoing strategy of divesting non-core operations to continuously improve our focus», said Gary Rodkin, chief executive officer of ConAgra Foods. «As our past portfolio changes have demonstrated, transactions like these, along with our capital allocation discipline, have allowed us to concentrate our resources behind the highest opportunity areas of our company. Olam´s global leadership in food ingredients will provide the Gilroy Foods + Flavors dehydrated and vegetable products business more attention and resources for growth».
