Conagra sells seafood brands to High Liner Foods for $55 million

CHICAGO - Conagra Brands, Inc. (NYSE: CAG), currently valued at $10.63 billion and trading near its 52-week low of $22.26, has agreed to sell its Van de Kamp’s and Mrs. Paul’s frozen seafood brands to High Liner Foods for $55 million in cash. The sale includes all related intellectual property and inventory but excludes employees and manufacturing facilities.

The seafood products involved in the deal contributed about $75 million to Conagra’s fiscal year 2024 net sales, representing less than 1% of the company’s $11.7 billion annual revenue. The divestiture is expected to have a minimal impact, reducing fiscal year 2026 adjusted earnings per share by one cent. The transaction is anticipated to close by the end of July 2025, with the proceeds earmarked for debt reduction. According to InvestingPro data, the company maintains a significant 6.29% dividend yield, having sustained dividend payments for 50 consecutive years.

Sean Connolly, president and CEO of Conagra Brands, stated that the sale aligns with the company’s strategy to reshape its portfolio and focus on areas of growth and innovation. He highlighted that Van de Kamp’s and Mrs. Paul’s function largely independently within the seafood sector, and this move allows Conagra to concentrate on strengthening its core frozen offerings.

Van de Kamp’s and Mrs. Paul’s are recognized names in the U.S. frozen breaded and battered seafood category, offering products such as crispy battered fillets, breaded fish for sandwiches and tacos, and fish sticks.

Conagra Brands, a major North American branded food company, boasts a diverse portfolio that includes well-known brands like Birds Eye, Duncan Hines, and Healthy Choice. The company, which prioritizes agility and innovation, generated over $12 billion in net sales for fiscal 2024.

This information is based on a press release statement from Conagra Brands, Inc.

In other recent news, Conagra Brands has finalized the sale of its Chef Boyardee brand to Hometown Food Company for $600 million. This transaction includes the Milton, Pennsylvania manufacturing facility and is part of Conagra’s strategy to focus on higher growth potential areas. The sale is expected to be completed in the first quarter of Conagra’s fiscal year 2026 and is projected to have a 4% dilutive effect on Conagra’s earnings per share for fiscal year 2025. Citi analysts have adjusted their outlook on Conagra, lowering the price target to $25 while maintaining a Neutral rating, citing the sale as a significant factor in their revised estimates.

Additionally, Conagra has secured a $200 million term loan with Mizuho Bank and extended an existing $300 million loan with Bank of America, enhancing its borrowing capacity and extending debt maturity. These financial moves are aimed at providing Conagra with more liquidity and flexibility in its capital structure. Meanwhile, Hometown Food Company, backed by Brynwood Partners, views the acquisition as a strategic expansion, expecting to bolster its presence in grocery and retail channels across the U.S., Canada, and Puerto Rico. The deal, pending regulatory approval, marks the largest acquisition in Brynwood’s 40-year history.

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