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Private Label

ConAgra Foods To Complete Sale Of PL Unit In Early 2016

By Steve Wynne-Jones
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ConAgra Foods To Complete Sale Of PL Unit In Early 2016

US-based food giant ConAgra Foods has said that it expects to complete the sale of its private-label operations in the first quarter of 2016.

The proceeds generated by the sale to TreeHouse Foods will total approximately $2.7 billion, which the company will use 'primarily for debt reduction', according to a statement.

ConAgra Foods made the announcement in its interim results for the second quarter of the year to 29 November, in which it posted a 2.9-per-cent year-on-year sales decline in its consumer-foods business, to $1.983 billion.

The group's total sales for the quarter stood at $3.092 billion, a 1.4-per-cent decline on the same period last year.

“Our team has been very productive in the first half of the fiscal year, with the divestiture of the private-label operations, the roll-out of our cost-reduction programme, the relocation of our headquarters to Chicago, and the announcement of the plan to split into two companies," said Sean Connolly, CEO and president, ConAgra Foods.

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"The bold moves we’re making are positioning us well to deliver long-term shareholder value."

© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here

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