Milling & Baking News - November 24, 2015 - 14

Business X

ConAgra Foods to spin off
Lamb Weston business
OMAHA - ConAgra Foods, Inc. plans
to break up the company into two independent, publicly-traded businesses. One will be called Conagra Brands
to be made up of the ConAgra Foods'
consumer brands business, and the
other will be called Lamb Weston and
be comprised of ConAgra Foods' frozen potato assets.
"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 of 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.
"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."
The two businesses operate in distinct markets and possess unique and
compelling growth prospects and

investment requirements, according to
the company. A break up of the businesses will allow for greater management focus on each business, increased
flexibility, tailored capital structures
and financial policies, and the ability
for investors to value the two companies based on their individual operational and financial characteristics.
When the break up is completed,
Conagra Brands is expected to have

approximately $7.2 billion in sales and
feature such brands as Marie Callender's, Hunt's, Reddi-wip, Slim Jim,
Pam, Chef Boyardee, Orville Redenbacher's, P.F. Chang's and Healthy
Choice. The business also is expected
to include several businesses that are
included in the company's Commercial Foods business unit, including
Spicetec Flavors & Seasonings and JM
Swank. Conagra Brands also is expected to retain the company's stake in the
Ardent Mills joint venture.
Conagra Brands will be led by Mr.
Connolly and headquartered in Chicago.
The Lamb Weston business will
have approximately $2.9 billion in
sales once the break up is completed.
The business features ConAgra's portfolio of frozen potato products primarily intended for the food service

Nanny's Stock wholesale bakery
opening in North Carolina
WILMINGTON, N.C. - Farmin', a
leader in locally-sourced food distribution, has opened a wholesale bakery operation: Nanny's Stock. The
bakery will offer southern classic
treats, including pies, cakes, pastries,
confections, biscuits and bread.
The Farmin' wholesale division,
Farmin' Exchange, currently services
more than 100 local restaurants, country clubs, retirement communities and
local schools and is looking to implement the bakery items from Nanny's
Stock into the current client database.
14 / November 24, 2015 XMilling & Baking News

The bakery operation will be located
at Farmin's Creative Campus, where
every item will be made in house and
delivered directly to the customer.
Randy Tugwell, culinary innovations
director for Farmin', and Wayne Scribner, head baker, collaborated to develop the recipes for Nanny's Stock.
"Wayne and I are excited about
our core offerings and look forward
to expanding those offerings in the
future," Mr. Tugwell said. "Stay
tuned for our ever-changing menu
and seasonal items." MBN

industry, and will include ConAgra's
interests in several joint ventures, including Lamb Weston/Meijer in Europe. Where the business will be headquartered and who will lead it will be
announced at a later date.
The company's joint ventures also
include a 44% stake in Ardent Mills,
formed in 2014 as a combination of
Horizon Milling L.L.C., a Cargill-CHS
joint venture, and ConAgra Mills. Ardent Mills is the largest flour milling
company in the United States. Cargill
also owns 44% of Ardent Mills while
CHS owns the remaining 12%.
During a conference call with
investment analysts Nov. 18, Sean
Connolly, president and chief executive officer of ConAgra Foods,
Inc., discussed plans for ConAgra's
milling company stake.
"Conagra Brands will also include several businesses that have a
strong connection to our existing retail business - the traditional food
service business, currently part of our
Commercial Foods segment; and select
private label operations we're retaining
in the pending sale of private brands,"
he said. "Conagra Brands will also retain Spicetec Flavors & Seasonings, JM
Swank, and the interest in our Ardent
Mills joint venture.
"On a pro forma basis, the business that will create Conagra Brands
accounted for about $9 billion in our
reported fiscal 2015 revenue. This figure excludes any contribution from
Ardent Mills, which, as a reminder, is
unconsolidated. Following the separation, Conagra Brands expects to maintain an investment grade credit profile
and remain committed to a strong and
attractive dividend."
The origins of ConAgra Foods are
in flour milling. The company was incorporated in 1922 as Nebraska Consolidated Mills. The company was
renamed ConAgra Inc. in 1971 and
acquired Lamb Weston in 1988.
The transaction is expected to be
completed in the fall of 2016, and it is
expected to be structured as a spin-off
of the Lamb Weston business. ConAgra
Foods shareholders will own shares of
both independent companies.
Since taking over as c.e.o. of
ConAgra Foods in April, Mr. Connolly
has initiated several dramatic changes.
In October, the company announced it
was laying off 1,500 employees and
moving its headquarters to Chicago. In
November, the company announced
plans to sell its Private Brands business unit to TreeHouse Foods for approximately $2.7 billion. MBN
bakingbusiness.com / world-grain.com

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - November 24, 2015

Table of Contents for the Digital Edition of Milling & Baking News - November 24, 2015