ConAgra Foods Announces Agreement to Acquire the Assets of American Pie, LLC
June 14 2010 - 5:15PM
Business Wire
ConAgra Foods, Inc. (NYSE: CAG) announced today that it has
agreed to acquire the assets of American Pie, LLC, based in
Woodbury, N.Y. American Pie manufactures frozen fruit pies, thaw
and serve pies, fruit cobblers and pie crusts under the licensed
Marie Callender’s and Claim Jumper trade names, as well as frozen
dinners, pot pies and appetizers under the Claim Jumper trade name.
Financial terms of the transaction, expected to close within 30
days, were not disclosed.
At close, the American Pie business will be managed as part of
ConAgra Foods’ existing Marie Callender’s frozen business, within
its Consumer Foods segment. The company’s current Marie Callender’s
business includes pot pies and a wide array of single and
multi-serve frozen dinners and entrees, sales of which have
increased 42 percent over the past five years according to IRI
data.
This transaction fits into ConAgra Foods’ acquisition strategy
which seeks to add depth and strength to its existing product lines
in key strategic pillars. By purchasing the assets of American Pie,
ConAgra Foods will have the opportunity to expand its presence in
the largest category within frozen retail desserts – frozen pies.
The company has existing presence in frozen foods with consumer
brands like Banquet® and Healthy Choice® in addition to its
existing Marie Callender’s branded product line.
“Acquiring the Marie Callender’s retail dessert pie business
will allow us to establish a strong presence in frozen dessert by
leveraging fully the power of the Marie Callender’s brand across
the frozen case,” said Gary Rodkin, CEO of ConAgra Foods. “Marie
Callender got her start selling pies and the brand has a very
strong equity with consumers. We look forward to continuing to grow
the business by leveraging brand synergies and investing in its
relationship with consumers and customers.”
A production facility in Torrance, Calif., is included in the
transaction and will join ConAgra Foods’ existing manufacturing
network. ConAgra Foods currently manufactures Marie
Callender’s-licensed frozen meals at facilities in Council Bluffs,
Iowa, Marshall, Mo., and Russellville, Ark. Those facilities are
not impacted by this impending acquisition and will continue to
operate normally. American Pie, LLC currently employs nearly 125
people primarily located in Torrance, Calif., and an office in
Woodbury, N.Y. All are expected to join ConAgra Foods at close.
ConAgra Foods produces, markets and sells its current Marie
Callender’s-branded consumer products under a license agreement
with Marie Callender’s Pie Shops, Inc.
About ConAgra FoodsConAgra Foods, Inc., (NYSE: CAG) is
one of North America’s leading food companies, with brands in 96
percent of America’s households. Consumers find Banquet, Chef
Boyardee, Egg Beaters, Healthy Choice, Hebrew National, Hunt’s,
Marie Callender’s, Orville Redenbacher’s, PAM, Peter Pan, Reddi-wip
and many ConAgra Foods brands in grocery, convenience, mass
merchandise and club stores. ConAgra Foods also has a strong
business-to-business presence, supplying frozen potato and sweet
potato products as well as other vegetable, spice and grain
products to a variety of well-known restaurants, foodservice
operators and commercial customers. For more information, please
visit us at www.conagrafoods.com.
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