Conagra Brands has announced the sale of the iconic Chef Boyardee brand to Hometown Food company, a part of private equity firm Brynwood Partners, for a whopping $600 million. This move marks a significant shift in Conagra’s portfolio strategy as they focus on their leading food categories such as snacks and frozen meals.
Hometown Food company will be acquiring a Pennsylvania plant along with Chef Boyardee’s shelf-stable products, excluding the frozen skillet meals which will be licensed back to Conagra. The Chef Boyardee products involved in the sale contributed approximately $450 million in net sales during Conagra’s fiscal year 2024. The transaction is expected to close before the end of Conagra’s first quarter, which historically falls in late August.
Conagra has been reshaping its portfolio in recent years, prioritizing growth-oriented businesses like snacks and frozen meals. This divestiture of Chef Boyardee is part of their strategy to focus on modern consumer brands and pay down debt. Sean Connolly, Conagra’s CEO, stated that this move will help the company build a more focused and financially strong organization.
Following their $10.9 billion acquisition of Pinnacle Foods in 2018, which added well-known brands like Birds Eye and Duncan Hines to their portfolio, Conagra has been working towards optimizing their brand portfolio and reducing debt. The sale of Chef Boyardee will further strengthen Conagra’s financial position and potentially pave the way for future M&A deals.
Brynwood Partners, the private equity firm behind Hometown Food company, sees the acquisition of Chef Boyardee as a significant milestone in their 40-year history. They plan to revitalize the brand and explore new formats to expand its reach in the market.
Chef Boyardee, known for its canned pasta offerings like Beef Ravioli and Spaghetti & Meatballs, has been a part of Conagra’s portfolio for over two decades. The brand was acquired in 2000 as part of Conagra’s purchase of International Home Foods. The brand’s founder, Hector Boiardi, originally started selling his pasta and sauce recipes from his popular Italian restaurant in Cleveland, leading to the creation of Chef Boyardee’s iconic products.
Overall, the sale of Chef Boyardee represents a strategic move for both Conagra and Hometown Food company, as they aim to leverage the brand’s heritage and market potential in the evolving food industry landscape.
