ConAgra Picks Up International Home Foods for $2.9 Billion
Announced this morning, ConAgra, Inc. and International Home Foods, Inc. have signed a definitive agreement for ConAgra to acquire International Home Foods, maker of Chef Boyardee pasta products, PAM cooking spray, and Gulden's Mustard. The transaction is valued at approximately $2.9 billion, consisting of the consideration above and the assumption of $1.3 billion of debt.
Upon completion of the acquisition, International Home Foods' brands will join with Healthy Choice, Butterball, Orville Redenbacher, and Swiss Miss as part of ConAgra's packaged foods business. ConAgra currently owns some 100 consumer brands, including 27 brands with annual retail sales of more than $100 million. International Home Foods brings numerous brands to ConAgra's portfolio, six of which individually have retail sales in excess of $100 million.
Bruce Rohde, ConAgra's chairman and CEO, said, ``This is an excellent opportunity for ConAgra and International Home Foods to combine for the benefit of both companies' shareholders. ConAgra and International Home Foods share an entrepreneurial culture with a strong focus on building profitable brands. This combination offers attainable synergies, and we expect it to be accretive to earnings in year one.''
C. Dean Metropoulos, International Home Foods chairman and CEO, said, ``Combining International Home Foods' strong retail portfolio with ConAgra is a sound business decision that will provide International Home Foods' brands with further growth opportunities and scale.''
Commenting on the fit between the two businesses, Rohde said ConAgra's alignment of its resources by customer channel and its focus on delivering innovative, value-added products to the consumer fits nicely with International Home Foods' strategy.
The acquisition, which is subject to approval by International Home Foods shareholders, regulatory approvals, and other customary closing conditions, is expected to close in the third quarter of calendar 2000.
ConAgra, Inc. is a $25-billion-plus food company, and is North America's largest foodservice manufacturer and second-largest retail food supplier.
International Home Foods, Inc. is a national manufacturer, distributor and marketer of food products. Its brands include Chef Boyardee pasta products, PAM cooking spray, Bumble Bee seafood, and Gulden's mustard.
Edited by Pam Ahlberg, managing editor, Food Online