Milling & Baking News Corporate Profiles - October 2011 - (Page 78)

Company Overview ConAgra Foods, Inc. Despite being rebuffed by Ralcorp, the company vows to pursue acquisitions onAgra Foods, Inc.’s past year may be defined more by what did not happen rather than the actual events that shaped the firm’s financial performance. In May 2011, Omaha-based ConAgra made an unsolicited bid to acquire Ralcorp Holdings for $4.9 billion plus the assumption of $2.5 billion in debt. The purchase price was approximately $86 per share in cash. Ralcorp rejected that offer as well as a second proposal of approximately $94 per share, and ConAgra withdrew its offer in September 2011. ConAgra’s bid to acquire Ralcorp Holdings highlighted its appetite for acquisitions. In a conference call with financial analysts on Sept. 20, Gary Rodkin, chief executive officer, said that while the effort to acquire Ralcorp did not work out, ConAgra will continue to pursue other avenues of growth, including acquisitions. “That’s our strategy,” he said. “We have a pipeline of alternatives that we’ve been assessing.” During the second quarter of fiscal 2012, ended Aug. 28, ConAgra posted income of $85.3 million, equal to 21c per share on the common stock, down 42% from $146.4 million, or 33c per share, in the same period a year ago. Sales for the quarter were $3,072 C million, up 10% from $2,804.3 million during the same quarter of the previous year. Mr. Rodkin said short-term wheat market dynamics and severe inflation hindered earnings during the quarter. ConAgra took pricing throughout its portfolio during the first quarter of 2012, and Mr. Rodkin said more pricing actions would be taken during the third quarter. Despite the challenging quarter, he reaffirmed the company’s earnings per share goal for the end of the year to grow at a low- to mid-single digit rate over the comparable $1.75 earned during fiscal 2011. In April, ConAgra sold its frozen handheld business unit to J&J Snack Foods Corp., Pennsauken, N.J., for an undisclosed amount. Brands included in the transaction were Patio, Hands Full, Holly Ridge Bakery, Villa Taliano and Top Picks. With approximately $50 million in sales, the business has manufacturing facilities in Holly Ridge, N.C., and Weston, Ore. ConAgra acquired the Marie Callender’s brand trademarks from Marie Callender’s Pie Shops, Inc. for $57.5 million. The company said the transaction fits into its strategy of acquiring businesses that add depth and strength to its existing product lines in key strategic pillars such as convenient meals, snacks and meal enhancers. Gary Rodkin The Marie Callender’s business includes pot pies, desserts and an array of single and multi-serve frozen dinners and entrees, sales of which have grown to nearly $800 million annually. Marie Callender’s is now ConAgra Foods’ No. 2 retail brand, after Banquet, selling 284 million frozen meals and desserts each year. The company also announced plans to close a microwavable popcorn manufacturing facility in Hamburg, Iowa, and shift production to other facilities. The Hamburg plant produces Orville Redenbacher’s and ACT II brand microwave popcorn products. A separate bulk popcorn processing and packaging facility in Hamburg will remain open, according to the company. CP F ast acts ConAgra Foods withdrew its unsolicited offer to acquire Ralcorp Holdings, Inc. for $94 per share in cash. It acquired the Marie Callender’s brand trademarks from Marie Callender’s Pie Shops, Inc. for $57.5 million. It closed a microwavable popcorn manufacturing facility in Hamburg, Iowa, and shifted production to other manufacturing facilities. 78 \ October 2011 Milling & Baking News • Food Business News • Baking & Snack • Meat & Poultry Corporate Proﬁles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - October 2011

Milling & Baking News Corporate Profiles - October 2011