CAG ConAgra Brands Inc

ConAgra Foods Inc. (CAG) said Monday it would sell part of its Gilroy Foods & Flavors unit to a Singapore-based company for $250 million.

The company is selling its operations that make dehydrated and fresh vegetable products, which had sales of about $300 million in the year ended last month, to Olam International Ltd. (O32.SG). The unit's seasonings and flavors businesses will remain at ConAgra's consumer food's division, its biggest.

The packaged-foods company reported in March that earnings rose 19% in the most recent quarter, as the company continued to benefit from budget-conscious shoppers eating more meals at home.

ConAgra shares rose 2% after hours to $24.48. The stock has risen a fifth in the last year, modestly better than the stock market at large.

-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@dowjones.com