Conagra Brands enters into definitive agreement to divest Chef Boyardee brand

Conagra Brands (CAG) entered into a definitive agreement with Hometown Food Company, a portfolio company of Brynwood Partners, to divest its line of Chef Boyardee brand shelf-stable products. The transaction includes the manufacturing facility in Milton, Pa., as well as all assets and operations dedicated to the Chef Boyardee shelf-stable products with the exception of frozen skillet meals, which will be licensed by Hometown Food to Conagra. The Chef Boyardee products that are part of the transaction contributed approximately $450M to Conagra’s FY24 net sales. The divestiture is subject to customary closing conditions, including the receipt of any applicable regulatory approvals. The sale price is $600M in cash and is expected to close in Q1 of Conagra’s FY26. The company estimates that, had the transaction been completed at the start of FY25, the divestiture would have been approximately 4% dilutive to adjusted EPS for the year, excluding transaction costs and other one-time impacts. Conagra expects to use the net proceeds from the transaction to pay down debt.