Conagra Brands has finalized an agreement to divest its Chef Boyardee line to Hometown Food Company for $600 million, aiming to focus on debt reduction and growth in its frozen and healthy snacking divisions.

Information on the Target

Conagra Brands, Inc. (NYSE: CAG), a prominent player in the North American food industry, has announced its decision to divest its Chef Boyardee® brand shelf-stable products line to Hometown Food Company, a subsidiary of Brynwood Partners. This agreement encompasses not only the iconic ready-to-eat pasta meals but also the manufacturing facility located in Milton, Pennsylvania, and all operations devoted to these products. However, it is important to note that the frozen skillet meals segment will be retained by Conagra, licensed back to the company by Hometown Food.

The Chef Boyardee products included in this divestiture accounted for approximately $450 million USD in Conagra's net sales for the fiscal year 2024. The transaction is valued at $600 million and is contingent upon standard closing conditions, including necessary regulatory approvals. It is anticipated to be finalized in the first quarter of Conagra's fiscal year 2026.

Industry Overview in the Target's Specific Country

The food industry in the United States, where Conagra operates, is characterized by intense competition among various branded food companies. Major players are continuously adapting to consumer preferences that increasingly le