ConAgra completes acquisition of Unilever’s North American frozen meals business

US-based ConAgra Foods has completed the acquisition of Unilever’s North American frozen meals division, which includes the Bertolli and PF Chang’s Home Menu frozen meals businesses, in an all cash deal of $267m.

The Bertolli and PF Chang’s businesses produce a range of frozen entrees and appetisers in North America under their respective brand names, and have combined annual revenues of approximately $300m.

The acquisition includes the licence for ConAgra to use the Bertolli brand name in the frozen meals business as well as the transfer of Unilever’s licence to use the PF Chang’s Home Menu brand name.

The sale does not include Unilever’s Kentucky facility where Bertolli and PF Chang’s frozen meals are currently produced, though the key manufacturing equipment will be relocated to an existing ConAgra Foods plant.

Unilever will retain the Bertolli trademark and continue to manufacture pasta sauce at its Kentucky facility.

ConAgra noted that this acquisition complements its existing frozen food brands such as Marie Callender’s, Banquet, Healthy Choice and Kid Cuisine, and provides growth opportunities in the segment.

In July 2012, ConAgra entered into an agreement to acquire Unilever’s North American frozen meals business, as part of its strategy to grow its core businesses, expand into adjacent categories, build its private label business, and continue to develop its international presence.

ConAgra Foods chief executive officer Gary Rodkin had then said that the company would employ its frozen food and innovation capabilities to grow the brands further.

Unilever divested its North American frozen meals business as part of its plan to exit the frozen foods business – in 2006, the company sold its European frozen foods unit to private equity firm Permira for €1.72bn.

The latest deal marks ConAgra’s fifth acquisition over the last 12 months after it failed in its efforts to acquire US food firm Ralcorp.

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Image: ConAgra Foods acquires Unilever’s North American frozen meals division to build its private label business and strengthen international presence. Photo: ConAgra Foods.