Conagra Brands, a well-known food manufacturer, has recently announced a deal to sell its Van de Kamp’s and Mrs. Paul’s brands to seafood producer High Liner Foods for $55 million. This move is part of Conagra’s strategy to focus on strengthening its core frozen offerings, as stated by Sean Connolly, Conagra’s president and CEO.
The sale of these two frozen seafood brands is expected to allow Conagra to streamline its portfolio and lower its debt. Earlier this week, Conagra also closed on the sale of Chef Boyardee to Hometown Food for $600 million. This series of divestitures demonstrates Conagra’s commitment to reshaping its portfolio and investing in areas with the best opportunities for growth and innovation.
Van de Kamp’s and Mrs. Paul’s, although leading brands in the U.S. frozen breaded and battered seafood category, are minor contributors to Conagra’s overall business. The transaction with High Liner Foods does not include employees or manufacturing facilities and is expected to close by the end of July. The proceeds from the sale will be used to reduce debt.
High Liner Foods, the acquiring company, is already familiar with the fish brands it will be adding to its portfolio. They currently co-manufacture products for Mrs. Paul’s and Van de Kamp’s brands at their U.S. manufacturing facilities. As a top North American processor and marketer of frozen seafood, High Liner Foods offers a variety of brands such as High Liner, Fisher Boy, Mirabel, Sea Cuisine, and Catch of the Day.
Overall, the sale of Van de Kamp’s and Mrs. Paul’s by Conagra Brands reflects the company’s strategic focus on optimizing its portfolio and investing in areas of growth and innovation. This transaction marks another step in Conagra’s journey towards strengthening its core offerings and enhancing its financial position in the market.
