ConAgra Foods acquires Odom’s Tennessee Pride

US packaged foods company ConAgra Foods has completed the acquisition of Odom’s Tennessee Pride, a leading manufacturer of frozen and refrigerated breakfast sandwiches and sausages, for an undisclosed amount.

The acquisition is a part of the company’s strategy to develop its portfolio in the growing breakfast category.

ConAgra Foods chief executive officer Gary Rodkin said the acquisition of Odom’s Tennessee Pride will build on ConAgra’s strong position in frozen meals and help leverage the company’s existing innovation, marketing and distribution abilities.

The deal, which was announced in mid-April, includes Odom’s Tennessee Pride’s facilities in Little Rock, Arkansas, and Dickson, Tennessee, and its headquarters office in Madison, Tennessee.

Odom’s Tennessee Pride manufactures and markets fresh breakfast sausages, breakfast sandwiches, fully cooked products, appetizers and sausage gravy for retail and foodservice distribution throughout the US with annual sales of more than $190m.

ConAgra, which has $640m cash on hand at the end of its third quarter of fiscal 2012, has been on a look out to acquire smaller companies to either expand its international presence or strengthen its private label business.

In line with this strategy, the company acquired National Pretzel, a maker of private-label pretzels, for $301.9m in November 2011, and Del Monte Canada, which sells Del Monte branded packaged fruit, fruit snacks and vegetables, for $185m in March 2012.

ConAgra Foods, headquartered in Nebraska, US, provides branded, private label, and customised food products and also offers commercially branded foods and ingredients.

For the third quarter 2012, ConAgra Foods reported a 26% jump in net income to $271.6m in 2012, compared to $214.8m to 2011, helped by lower taxes and cost savings.

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Image: ConAgra expects to improve its portfolio in the growing breakfast category with the latest Odom’s Tennessee Pride acquisition. Photo: ConAgra Foods