ConAgra to spin off frozen potato business to Lamb Weston
by November 18, 2015 8:24 pm 140 views
ConAgra Foods announced plans to divide the company into two independent public companies, with one being its consumer portfolio of brands, and the other its foodservice portfolio of frozen potato products, the company said in a news release Wednesday (Nov. 18).
The consumer brands business will be renamed ConAgra Brands Inc. and the frozen potato business will operate under the Lamb Weston name. The transaction is expected to be completed in the fall of 2016 and after that ConAgra Foods shareholders will own shares of each independent companies.
The transaction is expected to be structured as a spin-off of the Lamb Weston business, tax-free to the company and its shareholders.
“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,” said CEO Sean Connolly.
“We carefully considered a variety of strategic alternatives”, Connolly notes in the release.
He said the separation will enable each company to sharpen its strategic focus and provide flexibility to capitalize on the unique growth opportunities in its respective market.
ConAgra operates a sales office in Northwest Arkansas as a major supplier to Wal-Mart Stores Inc.