WASHINGTON (dpa-AFX) - Conagra Brands, Inc. (CAG), Thursday announced its decision to sell its Chef Boyardee brand to Hometown Food Company, a portfolio company of Brynwood Partners, for $600 million in cash.
The deal includes the 820,000 square foot facility in Milton, PA, as well as all assets and operations dedicated to the Chef Boyardee brand.
The company plans to use the sales proceeds for debt repayment.
Conagra estimates that if the transaction would complete at the start of the fiscal year 2025, then the divestiture would be approximately four percent dilutive to adjusted earnings per share for the year.
The acquisition is expected to close in the first quarter of Conagra's fiscal year 2026. Meanwhile, Brynwood expects the deal to close in the second quarter of 2025.
In the pre-market hours, Conagra's stock is trading at $24.61, down 0.40 percent on the New York Stock Exchange.
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