March 28, 2008

ConAgra to sell commodity trading operations for US$2.1 billion

ConAgra Inc. (CAG) on Thursday announced it would sell its trading and merchandising operations to the Ospraie Special Opportunities fund and other investors for US$2.1 billion. 

ConAgra Trade Group will be renamed Gavilon LLC upon completion of the sale.  

ConAgra Foods' long-term earnings per share annual growth target is around 8 percent to 10 percent, excluding items impacting comparability. 

The company expects to use the US$1.4 billion in proceeds from the sale for share repurchases, debt reduction and internal investment opportunities.

ConAgra is a US top food producer, offering packaged and frozen foods, with well-known brands, including Banquet, Chef Boyardee, Egg Beaters, Healthy Choice, Hunt's, Jiffy, Orville Redenbacher's, PAM, Slim Jim, and Van Camp's.

The company has sold off its agricultural segments and a number of non-core brands in order to produce only branded and value-added packaged foods.