ConAgra to acquire
Bertolli, P F Chang’s
ops from Unilever
Jul 31, 2012 10:25 AM
ConAgra Foods Inc (NYSE: CAG) has entered into a definitive agreement to acquire the Bertolli and P F Chang’s Home Menu frozen meals businesses from Unilever PLC for a total cash consideration of $265 million.
With annual sales approaching $300 million, the Bertolli and P F Chang’s businesses are leaders in the frozen multi-serve meals segment. The agreement includes a license for use of the Bertolli brand name and transfer of Unilever’s existing license with P F Chang’s for use of the P F Chang’s Home Menu brand name.
ConAgra’s position in the freezer case with brands such as Marie Callender’s, Banquet, Healthy Choice, and Kid Cuisine will be enhanced by the addition of the Bertolli and P F Chang’s brand names and the Italian and Asian food they bring to the portfolio.
When complete, this acquisition will support ConAgra’s growth strategy, which includes growing its core businesses and expanding into adjacent categories, building its private label business, and continuing to develop its international presence. This will be the fifth acquisition in the past 12 months for ConAgra, following the acquisitions of National Pretzel Company, Del Monte Canada, Odom’s Tennessee Pride, and the pita chip business of Kangaroo Brands.
The Bertolli and P F Chang’s frozen meals are currently produced in a Unilever facility that is not included in the sale. As part of the acquisition, key manufacturing equipment will be relocated to an existing ConAgra Foods facility.
This acquisition, which is expected to close within the next 30-60 days subject to customary closing conditions, does not alter ConAgra fiscal 2013 financial goals; the company expects fiscal 2013 EPS (earnings per share), adjusted for items impacting comparability, to grow 6% to 8% over the comparable fiscal 2012 EPS of $1.84. The company also continues to expect fiscal 2013 operating cash flow to exceed $1.2 billion.
For more information, visit www.conagrafoods.com.
© 2013 Penton Media Inc.
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