Wed, Nov. 18, 6:39 AM
- ConAgra Brands will be a diverse portfolio of leading brands. 2015 revenue: $9B.
- Lamb Weston will be a leading foodservice supplier of frozen potatoes. 2015 revenue: $2.9B. 2015 operating profit: $570M.
- CAG plans tax-free distribution of Lamb Weston publicly-traded stock.
- Expected completion: fall 2016.
- Mgmt. color: "The decision to separate into two pure-play companies reflects our ongoing commitment to implementing bold changes in order to deliver sustainable growth and enhanced shareholder value. We carefully considered a variety of strategic alternatives, and believe that the separation of our Lamb Weston specialty potato business from our consumer brands business is the best way to drive shareholder value. The separation will enable each company to sharpen its strategic focus and provide flexibility to capitalize on the unique growth opportunities in its respective market.
- "Shareholders will gain direct exposure to more focused consumer and commercial foods businesses, each with distinct customer bases and investment profiles. We are confident that this separation will best position each company to compete and win while creating compelling long-term value for shareholders and delivering benefits to employees, customers and other key stakeholders."
- Conference call: 8:30 this morning.
- Source: Press Release
- Related: Bullish Thesis Inevitable With ConAgra Foods Growth Potential And Expected EPS Growth (Oct. 1)
Mon, Nov. 2, 8:06 AM
- Shares of ConAgra Foods (NYSE:CAG) move higher after the company unloads its private label business to TreeHouse Foods.
- Looking ahead, ConAgra thinks its lighter load will help it renew the focus on the consumer foods and commercial foods segments.
- The company expects the deal to impact EPS negatively by $0.35 in the first year after closing, but then add $0.70 to profit in the second year.
- Certain private label businesses connected to the consumer foods business (canned pasta, cooking spray, peanut butter, pudding/gels) were strategically pulled out of the TreeHouse deal.
- Previously: ConAgra Foods sells private label business to TreeHouse Foods (Nov. 02 2015)
- CAG +6.19% premarket to $43.06.
Mon, Nov. 2, 6:57 AM
Mon, Oct. 26, 2:17 AM
- The global meat industry is up in arms about the prospect of its products being declared carcinogenic by the cancer research arm of the World Health Organization.
- The International Agency for Research on Cancer is due to issue a report on Monday that is expected to rule that processed meat such as bacon and sausages is a carcinogen, while red meat is probably carcinogenic.
- "Red and processed meat are among 940 substances reviewed by IARC found to pose some level of theoretical 'hazard'," said Barry Carpenter, President of the North American Meat Institute. "Only one substance, a chemical in yoga pants, has been declared by IARC not to cause cancer."
- Related tickers: CAG, COST, HRL, OTCQX:JBSAY, KHC, SYY, TSN
Thu, Oct. 22, 7:45 PM
- Reuters reports TreeHouse (NYSE:THS) is in late-stage talks to buy private-label foodmaker Ralcorp from ConAgra (NYSE:CAG).
- Neither company has moved yet after hours. Ralcorp, which makes cereals, cookies, crackers, pasta, and other food products, was acquired by ConAgra for $6.8B in 2013 after factoring debt.
- The NY Post reported of talks between TreeHouse and ConAgra in August.
Tue, Oct. 20, 9:45 AM
- Weight Watchers (NYSE:WTW) is up another 16.7% today to follow up on yesterday's Oprah-inspired moonshot.
- The renewed confidence in the Weight Watchers brand should lead to some strategy sessions over the direction of Healthy Choice (NYSE:CAG), Nutrisystem (NASDAQ:NTRI), Lean Cuisine (OTCPK:NSRGY), and Jenny Craig (PE-owned) which have seen a slowdown in growth.
- The weight loss brands have typically relied on star power to market their programs, although the Oprah investment in WTW has set the bar much higher.
- Previously: Oprah Winfrey and Weight Watchers to partner (Oct. 19 2015)
- Previously: Weight Watchers +46% with Oprah star power on board (Oct. 19 2015)
- Previously: Details on Oprah's Weight Watchers deal (Oct. 19 2015)
Thu, Oct. 1, 8:33 AM
Thu, Oct. 1, 7:46 AM
- ConAgra (NYSE:CAG) expects $300M of savings from a new efficiency plan - $200M from lower headcount and non-headcount costs (embracing zero-based budgeting), and $100M of benefits from enhancements to trade spend processes and tools. There will be modest benefit in 2016, more than half of savings by year-end 2017, and the full $300M be 2018.
- The headcount cuts will amount to roughly 1.5K positions, or 30% of the company's global office-based workforce.
- The company will relocate its HQ from Omaha to Chicago beginning next summer, though it will retain a significant presence in Warren Buffett's hometown with 1.2K workers.
- Source: Press Release
Fri, Sep. 25, 2:04 PM
- Packaged food stocks are ahead of broad market averages for the day. There are some consistent themes playing out in the sector which have increased interest in select names. Topping the list are M&A potential, activist investor action, and good old-fashioned fundamental valuation.
- Gainers: Treehouse Foods (NYSE:THS) +3.1%, B&G Foods (NYSE:BGS) +2.9%, ConAgra Foods (NYSE:CAG) +2.7%, Kellogg (NYSE:K) +2.6%, General Mills (NYSE:GIS) +2.3%, Campbell Soup (NYSE:CPB) +2.3%, J.M. Smucker (NYSE:SJM) +1.6%.
Fri, Sep. 25, 8:47 AM
Thu, Sep. 24, 5:37 PM
Tue, Sep. 22, 7:59 AM
- ConAgra Foods (NYSE:CAG) reports Commercial Foods segment sales grew 3.5% to $1.097B.
- Consumer Food segment sales fell 0.3% to $1.697B.
- Gross margin rate increased 370 bps to 25.1%.
- SG&A expense rate +20 bps to 14.5%.
- Adjsuted segment profit: Consumer Foods: $248M (+22%); Commercial Foods: $139M (+13%).
- Private brands operations classified as discontinued operations for the quarter.
- FQ1 results
Tue, Sep. 22, 7:33 AM
Mon, Sep. 21, 5:30 PM
Tue, Aug. 25, 5:35 PM
- investors should stick with "market darlings" - the 25 stocks that had performed the best during the six months before a market pullback - according to the analyst team at RBC.
- The firm notes that although many recent winners are leading the market lower, the extent of the underperformance is just 1%; it also says investing in the group following sharp market pullbacks is a winning strategy over the ensuing week, month and six months.
- RBC's 25 market darlings are AET, ALTR, AMZN, AIZ, CVC, CI, CAG, EA, EQIX, EXPE, GME, GOOGL, HAS, HCA, MNST, NFLX, NKE, PRGO, REGN, SBUX, TSO, TWC, TSS, UA, UHS
Sat, Aug. 22, 9:14 AM
- TreeHouse Foods (NYSE:THS) is in advanced talks to buy the private-label food business of ConAgra (NYSE:CAG), sources tell New York Post.
- A deal could be struck for the Ralcorp business in the neighborhood of $3B. ConAgra tipped earlier this year it planned to divest Ralcorp.
- Cerberus Capital Management and Post Holdings (NYSE:POST) are believed to still be in the hunt as well.
- TreeHouse's CEO and CFO met with groups of investors this week to reiterate the food company's thirst for M&A.
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