CHICAGO, May 30, 2017 /PRNewswire/ -- Today Conagra
Brands, Inc. (CAG) announced that it has entered into a definitive
agreement with The J.M. Smucker Company (JMS) to divest the Wesson
oil brand. The transaction is subject to customary closing
conditions, including the receipt of any applicable regulatory
approvals. The transaction is valued at approximately $285 million.
"We continue to reshape our portfolio and focus our resources on
priorities that support Conagra's business strategy and drive value
creation for shareholders," said Sean
Connolly, president and chief executive officer of Conagra
Brands. "We believe The J.M. Smucker Company will be a terrific
steward of the Wesson brand."
Wesson is an iconic edible oil in the U.S., with product
offerings including vegetable, canola, corn and blended oils. Under
the terms of the agreement, Conagra will continue to make the
products sold under the Wesson brand and provide certain other
transition services for up to one year following the close of the
transaction.
About Conagra Brands
Conagra Brands, Inc. (NYSE: CAG),
headquartered in Chicago, is one
of North America's leading branded
food companies. Guided by an entrepreneurial spirit, Conagra
Brands combines a rich heritage of making great food with a
sharpened focus on innovation. The company's portfolio is
evolving to satisfy people's changing food
preferences. Conagra's iconic brands, such as Marie Callender's®, Reddi-wip®, Hunt's®, Healthy
Choice®, Slim Jim® and Orville
Redenbacher's®, as well as emerging brands, including
Alexia®, Blake's® Frontera® and Duke's®, offer choices for every
occasion. With an ongoing commitment to corporate citizenship,
Conagra Brands has been named to the Dow Jones Sustainability™
North America Index for six consecutive years. For more
information, visit www.conagrabrands.com.
Note on Forward-looking Statement
This press release
contains forward-looking statements within the meaning of the
federal securities laws. These forward-looking statements are based
on management's current expectations and are subject to uncertainty
and changes in circumstances. These forward-looking statements
include, among others, statements regarding expected benefits of a
potential divestiture of the Wesson oil brand, expectations about
future business plans, prospective performance and opportunities,
regulatory approvals and the expected timing of the completion of
the transaction. We undertake no responsibility for updating these
statements. Readers of this press release should understand that
these statements are not guarantees of performance or results.
There is no assurance that the potential transaction will be
consummated, and there are a number of risks and uncertainties that
could cause actual results to differ materially from the
forward-looking statements made herein. These risks and
uncertainties include: the timing to complete a potential
divestiture of certain assets related to the Wesson oil brand; the
ability and timing to obtain required regulatory approvals and
satisfy other closing conditions for the transaction; Conagra
Brands' ability to achieve the intended benefits of acquisitions
and divestitures, including the transaction described in this press
release and the recent spin-off of Conagra Brands' Lamb Weston
business; general economic and industry conditions; Conagra Brands'
ability to successfully execute its long-term value creation
strategy; Conagra Brands' ability to access capital; Conagra
Brands' ability to execute its operating and restructuring plans
and achieve its targeted operating efficiencies, cost-saving
initiatives, and trade optimization programs; the effectiveness of
its hedging activities, including volatility in commodities that
could negatively impact its derivative positions and, in turn, its
earnings; the competitive environment and related market
conditions; Conagra Brands' ability to respond to changing consumer
preferences and the success of its innovation and marketing
investments; the ultimate impact of any product recalls and
litigation, including litigation related to the lead paint and
pigment matters; actions of governments and regulatory factors
affecting Conagra Brands' businesses; the availability and prices
of raw materials, including any negative effects caused by
inflation or weather conditions; risks and uncertainties associated
with intangible assets, including any future goodwill or intangible
assets impairment charges; the costs, disruption, and diversion of
management's attention associated with campaigns commenced by
activist investors; and other risks described in the reports filed
by Conagra Brands from time to time with the Securities and
Exchange Commission. We caution readers not to place undue reliance
on any forward-looking statements included in this press release,
which speak only as of the date of this press release.
For more information, please
contact:
MEDIA:
Dan
Hare
312-549-5355
Daniel.hare@conagra.com
INVESTORS:
Brian
Kearney
312-549-5002
ir@conagra.com
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SOURCE Conagra Brands, Inc.