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CHICAGO - Conagra Brands, Inc. (NYSE:CAG), currently trading near its 52-week low at $20.40, announced Monday it has completed the divestiture of its Van de Kamp’s and Mrs. Paul’s frozen seafood brands to High Liner Foods.
The transaction includes all associated intellectual property and inventory, but does not include employees or manufacturing facilities, according to a company press release.
Conagra, headquartered in Chicago, is one of North America’s leading branded food companies with a portfolio that includes Birds Eye, Duncan Hines, Healthy Choice, Marie Callender’s, Reddi-wip, and Slim Jim. The company reported more than $12 billion in net sales for fiscal 2024.
The financial terms of the transaction were not disclosed in the announcement.
High Liner Foods, the buyer, is a North American processor and marketer of value-added frozen seafood products.
This divestiture represents another adjustment to Conagra’s brand portfolio as the company continues to evolve its product offerings. The company has a century-long history in the food industry and maintains operations focused on meeting changing consumer food preferences.
In other recent news, Conagra Brands reported fiscal 2024 net sales exceeding $12 billion, marking a significant development for the company. Meanwhile, TD Cowen lowered its price target for Conagra to $20.50 from $22, maintaining a Hold rating due to economic pressures such as potential tariff costs and supply chain disruptions. UBS initiated coverage with a neutral rating and a $22 price target, highlighting a balanced risk-reward profile despite organic growth challenges. Goldman Sachs downgraded Conagra from Neutral to Sell, setting a new price target of $21, citing anticipated margin pressures and limited pricing power. In another development, Conagra announced plans to remove artificial colors from its U.S. frozen product portfolio by the end of 2025, as part of its strategy to modernize its offerings. Additionally, board member Fran Horowitz will not seek reelection at the 2025 Annual Meeting of Shareholders. These recent developments reflect ongoing challenges and strategic adjustments for Conagra Brands.
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