Key Takeaways:
- Conagra Brands has agreed to sell its Van de Kamp’s and Mrs. Paul’s brands to seafood producer High Liner Foods for $55 million. This move allows Conagra to focus on strengthening its core frozen offerings, as the two seafood brands contributed approximately $75 million to Conagra’s net sales in fiscal year 2024.
- The sale of Van de Kamp’s and Mrs. Paul’s is part of Conagra’s strategy to streamline its portfolio and reduce debt. Earlier, the company sold Chef Boyardee to Hometown Food for $600 million.
Insights:
Conagra’s portfolio primarily consists of snacks and frozen foods such as Healthy Choice, Birds Eye, and Marie Callender’s. The sale of the seafood brands indicates a strategic shift away from a category that has little synergy with its main frozen offerings.
Van de Kamp’s and Mrs. Paul’s, though minor contributors to Conagra’s overall business, were leading brands in the U.S. frozen breaded and battered seafood category, generating $12.1 billion in net sales during the company’s 2024 fiscal year.
Conagra’s CEO, Sean Connolly, emphasized the company’s commitment to reshaping its portfolio and investing in growth opportunities. The divestiture of Van de Kamp’s and Mrs. Paul’s will allow Conagra to focus on areas with greater potential for innovation and expansion.
The transaction with High Liner Foods, expected to close by the end of July, does not include employees or manufacturing facilities. The proceeds from the sale will be used to reduce Conagra’s debt burden.
High Liner Foods, a prominent North American processor of frozen seafood, already co-manufactures products for Van de Kamp’s and Mrs. Paul’s at its U.S. facilities. The acquisition of these well-known seafood brands will further strengthen High Liner’s position in the market.