August 1, 2006

ConAgra to sell refrigerated meats business to Smithfield for US$575 million

ConAgra Inc Monday (Jul 31) agreed to sell its refrigerated meats business to Smithfield Foods Inc for US$575 million.

The deal includes US$475 million in cash, subject to working capital adjustments, and US$100 million in Smithfield stock.

ConAgra said the deal includes its Butterball, Eckrich and Armour, LunchMakers, Margherita and Longmont brands, as well as related assets, such as plants and inventory.

ConAgra estimates annual sales for the refrigerated meats business at about US$1.8 billion.

ConAgra expects the deal to close in Smithfield's fiscal second quarter ending Oct 30.