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ConAgra Foods splits, spins off Lamb Weston

ConAgra Foods announced Wednesday it will split into two separate companies, spinning off its Lamb Weston division of frozen food products. The Lamb Weston/RDO plant in Park Rapids will continue to operate as usual. "We're not expecting any chang...

ConAgra Foods announced Wednesday it will split into two separate companies, spinning off its Lamb Weston division of frozen food products. The Lamb Weston/RDO plant in Park Rapids will continue to operate as usual.  “We’re not expecting any changes right now in Park Rapids,” said Shelby Stoolman, communication manager at Lamb Weston headquarters in Idaho. “We retain our joint venture partnership with RDO, and as far as the Park Rapids team it’s business as usual.”  ConAgra’s Lamb Weston/RDO Frozen plant in Park Rapids, which makes French fries and other potato products, will remain with the spun-off Lamb Weston, according to ConAgra.  The Lamb Weston/RDO Frozen processing facility in Park Rapids employs 450 people.  

The consumer brands business will be renamed Conagra Brands and will comprise the company’s name brands. After the split, which is expected in fall 2016, ConAgra shareholders will own shares of both companies. The transaction, the company said, will be treated as a tax-free spinoff.  

“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,” said Sean Connolly, president and chief executive officer, ConAgra Foods. “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.”  Connolly in his statement went on to say 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.  

The Lamb Weston business made about $2.9 billion in fiscal 2015, according to ConAgra.  Conagra Brands will be comprised primarily of the operations currently reported as the company’s consumer foods segment, which generated approximately $7.2 billion in fiscal 2015, the company reported. Those brands include Marie Callender’s, Hunt’s, Rotel, Reddi-wip, Slim Jim, Pam, Chef Boyardee, Orville Redenbacher’s, P.F. Chang’s and Healthy Choice.  

Related Topics: PARK RAPIDSHUBBARD COUNTY
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