Conagra Brands has signed a definitive agreement with Hometown Food Company—a portfolio company of Brynwood Partners—to sell its non-refrigerated product line of the Chef Boyardee brand. This transaction includes the production plant located in Milton, Pennsylvania, along with all assets and operations related to these products, except for the frozen skillet meals, which Hometown will license to Conagra.
The products included in the transaction generated approximately $450 million in net sales during fiscal year 2024. The sale price amounts to $600 million in cash, and the closing of the deal is expected to take place in the first quarter of fiscal year 2026, subject to customary regulatory approvals.
Conagra’s CEO, Sean Connolly, emphasized that this divestiture represents a key step in the strategy to focus the portfolio on businesses with higher growth potential, such as frozen foods and healthy snacks, while also contributing to the reduction of the company’s debt.
If the transaction had been completed at the beginning of fiscal year 2025, it is estimated that it would have reduced adjusted earnings per share by approximately 4%, not counting associated costs or other extraordinary effects. The funds obtained will be used to pay off debt, and Conagra will provide more details on the financial impact in its fourth-quarter results.
Centerview Partners provided financial advice to Conagra, while Mayer Brown provided legal counsel.
Chef Boyardee is an American brand of canned foods known for its ready-to-eat pasta products, such as ravioli, spaghetti with meatballs, and lasagna. It was founded in 1928 by Ettore Boiardi, an Italian chef who emigrated to the United States. To make it easier for his customers to cook his recipes at home, Boiardi began selling kits with the necessary ingredients, which eventually led to the creation of the canned product line.
