ConAgra Foods Inc. announced Wednesday it will separate into two independent public companies. One company, named Conagra Brands, Inc., will comprise the company’s existing consumer portfolio of iconic brands that includes Marie Callender’s, Hunt’s, RO*TEL, Reddi-wip, Slim Jim, PAM, Chef Boyardee, Orville Redenbacher’s, P.F. Chang’s and Healthy Choice. The second company will operate under the name Lamb Weston and include its frozen potato products business.
“The decision to separate into two pure-play companies reflects our ongoing commitment to implementing bold changes in order to deliver sustainable growth and enhanced shareholder value,” says Sean Connolly, president and CEO of ConAgra. “We carefully considered a variety of strategic alternatives, and believe that the separation of our Lamb Weston specialty potato business from our consumer brands business is the best way to drive shareholder value. The separation will enable each company to sharpen its strategic focus and provide flexibility to capitalize on the unique growth opportunities in its respective market.”