ConAgra Foods completes sale of trading and merchandising operations

ConAgra Foods, Inc. announced Monday (June 23, 2008) the completion of the sale of its commodity trading and merchandising operations conducted by ConAgra Trade Group.

ConAgra Trade Group was sold for around US$2.8 billion to an investor group led by Ospraie Special Opportunities Fund, which also includes global growth investor General Atlantic LLC and a private investment fund managed by Soros Fund Management LLC.

The Ospraie Special Opportunities Fund is an affiliate of Ospraie Management, a leading investment management firm focused on commodities and basic industries with approximately US$9 billion under management.

The sold businesses will now operate as The Gavilon Group, LLC.

ConAgra Foods also announced that its Board of Directors has authorized a US$500-million increase to the company's existing share buyback programme.

Shares are expected to be repurchased periodically, depending on market conditions, and through open-market or privately negotiated transactions.

The Board of Directors has authorized the management to engage in an accelerated share repurchase arrangement, yet to be negotiated.

ConAgra Foods, Inc., is one of North America's leading packaged food companies, serving consumer grocery retailers, as well as restaurants and other foodservice establishments.

The Gavilon Group, LLC provides physical distribution, merchandising and trading of grains, feed ingredients and fertilizer and energy products.