ConAgra Foods, Inc., announced today the completion of the sale of its Gilroy Foods & FlavorsTM dehydrated and vegetable product operations to Olam International for before-tax proceeds of US$250mn in cash, net of transaction costs and subject to post-closing adjustments. The seasoning blends and flavors business and supporting plant operations were not part of the sale and remain with ConAgra Foods’ Commercial Foods reporting segment.
Under the terms of the agreement, ConAgra Foods sold substantially all of the assets of Gilroy Foods & Flavors’ dehydrated garlic, onion, capsicum and Controlled MoistureTM, GardenFrost, Redi-MadeTM, and fresh vegetable operations, all of which were part of the Commercial Foods reporting segment. Sales for those operations were approximately US$300mn in fiscal 2010.
A total of approximately 1,500 employees transitioned to Olam, including plant employees and those supporting the dehydrated and vegetable products business located at the Omaha, Neb., headquarters and other satellite locations for Gilroy Foods.
Manufacturing facilities that were not sold to Olam consist of the Carol Stream, Ill., Cranbury, N.J., and Hyrum, Utah, locations which produce seasoning blends and flavors. ConAgra Foods maintains full ownership of these plants and operations continue as usual within the Commercial Foods reporting segment.
Greg Estep, formerly president of the divested business for ConAgra Foods, is now president of spices and dehydrates for Olam International. Paul Maass, president of ConAgra Mills, assumed the additional responsibility of leading the remaining seasoning blends and flavors business under the Spicetec Flavors & Seasonings brand name.
ConAgra Foods has reclassified the financial results for the divested operations from continuing operations into discontinued operations for current and historical periods.
Olam International is a leading global integrated supply chain manager and processor of agricultural products and food ingredients, sourcing 20 products with a direct presence in 64 countries and supplying them to more than 10,600 customers. With direct sourcing and processing in most major producing countries for its various products, Olam has built a global leadership position in many of its businesses, including cocoa, coffee, cashew, sesame, rice, cotton and wood products. Headquartered in Singapore and listed on the SGX-ST on Feb. 11, 2005, Olam currently ranks among the top 40 largest listed companies in Singapore in terms of market capitalization and is a component stock in the Straits Times Index (STI), MSCI Singapore Free, S&P Agribusiness Index and the DAXglobal Agribusiness Index.
ConAgra Foods, Inc., 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 potato, other vegetable, spice and grain products to a variety of well-known restaurants, foodservice operators and commercial customers.