ConAgra is turning off its frozen potatoes business and emptying a second major division as it attempts to increase its emphasis on key name brand foods. The organization said that it would split off driving brands like Chef Boyardee and Healthy Choice into Conagra Brands Inc. It will turn off its frozen potato business under the Lamb Weston name.
After the announcement of the split, which is to be finished by fall of 2016, the company shares bounced by 4 percent.
“The choice to partition into two pure play organizations mirrors our continuous duty to actualizing striking changes keeping in mind the end goal to convey supportable development and upgraded shareholder quality,” said CEO Sean Connolly, in a printed statement.
There have been some huge changes at ConAgra this year since Connolly got to be CEO in the spring. The organization declared the sale of the majority of its private-mark operations to TreeHouse Foods Inc. for about $2.7 billion. It likewise plans to cut 1,500 employments, around 30 percent of its office-based workforce, as it moves its central command from Omaha, Nebraska, to Chicago by next summer.
ConAgra has additionally felt weight to roll out improvements from investor Jana Partners, which uncovered a 7.2 percent share in the food organization in June and increased two seats on ConAgra’s board in June.
“The detachment will empower every organization to hone its vital center and give adaptability to profit by the one of a kind development opportunities in its separate business sector,” said CEO Sean. “Shareholders will get direct exposure to more engaged shopper and commercial food business, each with unmistakable client bases and speculation profiles.”
Under the Conagra Brands umbrella will be shopper brands like Marie Callender’s, Slim Jim, Chef Boyardee, Orville Redenbacher’s and P.F. Chang’s, which produced $7.2 billion in incomes in financial 2015. After the split, the organization will be driven by current CEO Connolly and be headquartered in Chicago.