Conagra Brands, Inc. has entered into a definitive agreement to sell its iconic Chef Boyardee brand of shelf-stable pasta meals to Hometown Food Company, a portfolio company of Brynwood Partners.
The USD600m all-cash transaction includes the transfer of Conagra’s manufacturing facility in Milton, Pennsylvania, along with all assets and operations tied to Chef Boyardee’s shelf-stable offerings. The deal excludes Chef Boyardee’s frozen skillet meals, which will continue to be licensed by Hometown Food Company back to Conagra.
The divestiture reflects Conagra’s ongoing strategy to streamline its portfolio and focus on categories it believes are positioned for stronger long-term growth, namely frozen foods and healthy snacks. The Chef Boyardee brand, known for its convenient, ready-to-eat pasta products, contributed approximately USD450m to Conagra’s net sales in fiscal year 2024.
“The Chef Boyardee divestiture marks another milestone in reshaping the Conagra Brands portfolio for better long-term growth, while also paying down debt,” said Sean Connolly, president and chief executive officer of Conagra Brands.
“Despite the uncertain external environment, Conagra remains proactive in its pursuit of shareholder-value creation. By deepening our focus on our leading, growth-oriented frozen and healthy-snacking businesses, we continue to build a more focused company with modern consumer brands.”
The transaction, which is subject to standard closing conditions including regulatory approval, is expected to close in the first quarter of Conagra’s fiscal year 2026. The company estimates the sale would have been roughly four percent dilutive to adjusted earnings per share in fiscal 2025 had it occurred at the beginning of the year, excluding one-time costs and transaction-related impacts.
Proceeds from the sale are expected to be used to reduce debt, a move aligned with Conagra’s financial priorities as it continues to optimize its capital structure and balance sheet.
Centerview Partners LLC served as Conagra’s exclusive financial advisor on the transaction, while Mayer Brown LLP provided legal counsel.
Find out more at: https://www.conagrabrands.com