Representing ConAgra Foods Inc.’s (CAG) latest effort to reignite growth, the Omaha, Neb.-based food giant announced plans on Wednesday to break into two, separate publicly traded companies. The move, to be structured as a tax-free spin-off, follows the sale of ConAgra’s private label food business to Treehouse Foods Inc. (THS) for $2.7 billion in early November. The food producer’s stock was up almost 4% in morning trading, pegged at around $41 per share. One of the spun off entities will consist of ConAgra’s branded food business, to be named ConAgra Brands Inc., and will be based in Chicago. The division accounted for fiscal 2015 revenue of $7.2 billion. The other will be comprised of its frozen potato food service unit operated under the Lamb Weston name. It generated fiscal 2015 revenue of $2.9 billion while contributing most of the unit’s $570 million in operating profit during that time period. Shareholders of ConAgra will receive shares in the two pure-play companies after the spin-off is completed, which is expected to occur in the fall of 2016.
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