LONDON (dpa-AFX) - ConAgra Foods, Inc. (CAG) said Monday that it has agreed to buy the Bertolli and P.F. Chang's Home Menu frozen meals businesses from Unilever PLC (UL, UN, ULVR.L) for $265 million in cash.
The combined Bertolli and P.F. Chang's businesses had annual sales of about $300 million in 2011.
The deal includes a license for the use of the Bertolli brand name and the transfer of Unilever's existing license with P.F. Chang's for use of the P.F. Chang's Home Menu brand name.
The Bertolli and P.F. Chang's frozen meals are currently produced in a Unilever facility that is not included in the sale. As part of the acquisition, key manufacturing equipment will be relocated to an existing ConAgra Foods facility.
ConAgra Foods said its strong position in the freezer case with brands such as Marie Callender's, Banquet, Healthy Choice and Kid Cuisine, will be enhanced by the addition of the Bertolli and P.F. Chang's brand names and the Italian and Asian food they bring to the portfolio.
ConAgra Foods said the acquisition, which is expected to close within the next 30-60 days, does not alter its fiscal 2013 financial goals.
The Omaha, Nebraska-based company expects fiscal 2013 adjusted earnings per share to grow 6% to 8% percent over the comparable fiscal 2012 adjusted earnings per share of $1.84. Analysts polled by Thomson Reuters currently expect the company to earn $1.98 per share for the fiscal year 2013. Analysts' estimates typically exclude special items.
Unilever said the decision to sell its North American frozen meals business is in line with its global strategy to exit the frozen foods business. the company previously divested its European frozen foods business.
Copyright RTT News/dpa-AFX
© 2012 AFX News
