ConAgra Foods files paperwork for spin-off

ConAgra Foods has filed paperwork with the US Securities and Exchange Commission (SEC) to divide the company into two independent public firms, namely Lamb Weston Holdings and Conagra Brands.

ConAgra Foods president and chief executive officer Sean Connolly said: “We believe that this separation will create two focused companies that are well-positioned to unlock unique growth opportunities to win in the marketplace and create value for stockholders.

“We have made tremendous progress since last November when we announced our plan to separate, and the filing of the Form 10 marks an important milestone in this process.”

Current ConAgra Foods director Timothy R McLevish will become executive chairman of the board of directors of Lamb Weston.

McLevish said: “I’ve had the opportunity to get to know this business very well, and I believe it has terrific prospects as a standalone company. We are extremely well-positioned for long-term growth and shareholder value creation.”

Lamb Weston’s portfolio will include frozen potato, sweet potato, appetiser and other vegetable products. It provides french fries to fast food restaurants such as McDonald’s and KFC, reported Bloomberg.

The plan is subject to certain conditions, including securing final approval from the board of directors of ConAgra Foods and regulatory approval.

According to ConAgra Foods, the creation of Lamb Weston following the split is expected to be tax-free to shareholders.

The company recently shifted its base from Omaha, Nebraska, to Chicago, Illinois.