ConAgra Foods to Sell All of Its Remaining Shares in Pilgrim's Pride Corporation for $482 Million
August 04 2005 - 9:20AM
Business Wire
ConAgra Foods Inc. (NYSE:CAG), one of North America's leading
packaged food companies, today announced that it has entered into
an agreement to sell all of its remaining 15.4 million shares of
Pilgrim's Pride Corporation (NYSE:PPC) to that company for an
estimated $482 million before tax. ConAgra Foods will record a
pretax gain of approximately $333 million from selling these shares
during the first quarter of fiscal 2006. The transaction is
conditioned upon Pilgrim's Pride Corporation's recently announced
underwritten public offering, which is expected to occur on August
9, 2005. ConAgra Foods sold its chicken processing operations to
Pilgrim's Pride Corporation in the fall of 2003 for $300 million in
cash and 25.4 million of Pilgrim's Pride shares; this was part of
ConAgra Foods' strategy to focus on branded and valued-added
opportunities. ConAgra Foods began liquidating the Pilgrim's Pride
shares in December 2004, when it sold 10 million shares for $282
million before tax. The liquidation will be completed with the
event described in today's announcement. After these 15.4 million
shares have been sold, ConAgra Foods will have received total
proceeds in excess of $1 billion before taxes from the divestiture
of the chicken processing operations. ConAgra Foods Inc. (NYSE:CAG)
is one of North America's largest packaged food companies, serving
consumer grocery retailers, as well as restaurants and other
foodservice establishments. Popular ConAgra Foods consumer brands
include: ACT II, Armour, Banquet, Blue Bonnet, Brown 'N Serve,
Butterball, Chef Boyardee, Cook's, Crunch 'n Munch, DAVID, Decker,
Eckrich, Egg Beaters, Fleischmann's, Golden Cuisine, Gulden's,
Healthy Choice, Hebrew National, Hunt's, Kid Cuisine, Knott's Berry
Farm, La Choy, Lamb Weston, Libby's, Life Choice, Lightlife, Lunch
Makers, MaMa Rosa's, Manwich, Marie Callender's, Orville
Redenbacher's, PAM, Parkay, Pemmican, Peter Pan, Reddi-wip,
Rosarita, Ro*Tel, Slim Jim, Snack Pack, Swiss Miss, Van Camp's,
Wesson, Wolf, and many others. For more information, please visit
us at www.conagrafoods.com. Note on Forward-Looking Statements:
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These statements are based on management's current views and
assumptions of future events and financial performance and are
subject to uncertainty and changes in circumstances. Readers of
this release should understand that these statements are not
guarantees of performance or results. Many factors could affect the
company's actual financial results and cause them to vary
materially from the expectations contained in the forward-looking
statements. These factors include, among other things, future
economic circumstances, industry conditions, company performance
and financial results, availability and prices of raw materials,
product pricing, competitive environment and related market
conditions, operating efficiencies, access to capital, actions of
governments and regulatory factors affecting the company's
businesses and other risks described in the company's reports filed
with the Securities and Exchange Commission. The company cautions
readers not to place undue reliance on any forward-looking
statements included in this release, which speak only as of the
date made.
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