ConAgra Foods to buy Odom’s Tennessee Pride

US packaged foods company ConAgra Foods has agreed to acquire Odom’s Tennessee Pride, a leading manufacturer of frozen and refrigerated breakfast sandwiches and sausage, for an undisclosed amount.

The acquisition is part of ConAgra’s strategy to strengthen its capabilities in the frozen breakfast market and will complement its existing frozen foods business, which includes Banquet and Healthy Choice frozen meals.

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

"We are excited to develop our portfolio in the growing breakfast category," Rodkin added.

The deal includes Odom’s Tennessee Pride’s facilities in Little Rock, Arkansas, and Dickson, Tennessee, and its headquarters office in Madison, Tennessee.

The transaction, which is subject to customary closing conditions, is expected to be completed within the next 45 days.

Odom’s Tennessee Pride is the second largest producer of frozen breakfast sandwiches in the US and manufactures and markets fresh breakfast sausage, breakfast sandwiches, fully cooked products, appetizers and sausage gravy for retail and foodservice distribution throughout the US. The company has annual sales of more than $190m.

ConAgra has been seeking to acquire smaller food companies that complement its existing food business, expand its private-label business or ones that strengthen its international footprint.

Its most recent acquisitions include National Pretzel, a maker of private-label pretzels, for $301.9m in November 2011, and Del Monte Canada in Canada, for $185m in March 2011.

The acquisitions are part of the company’s plan to utilise its cash on hand, which totalled $640m at the end of its third quarter in fiscal 2012.

Image: The acquisition of Odom’s Tennessee Pride is part of ConAgra’s strategy to strengthen its capabilities in the frozen foods business. Photo:ConAgra Foods