ConAgra Foods sells its JM Swank and Spicetec Flavors & Seasonings businesses

North American packaged food company ConAgra Foods has completed the sale of its JM Swank and Spicetec Flavors & Seasonings businesses.

Ingredient sourcing and distribution unit JM Swank was acquired by US-based Platinum Equity and Spicetec Flavors & Seasonings was bought by Swiss seasonings group Givaudan for $340m.

The sale agreement with Givaudan also included the transition of approximately 280 employees, as well as facilities in Cranbury, New Jersey, and Carol Stream, Illinois, US.

Following the completion of the sale, JM Swank is expected to continue operating as ConAgra Foods’ supplier and customer.

The divestures are expected to allow the group to focus on its consumer-facing business.

The company is reported to have generated approximately $488m in combined net proceeds from the sales, subject to any final working capital adjustments.

ConAgra Foods president and chief executive officer Sean Connolly said: "Today marks an important milestone for ConAgra Foods. The completion of these two divestitures is another step on our journey to becoming a more focused and higher performing company.

“We truly appreciate the contributions of the JM Swank and Spicetec Flavors & Seasonings employees, and we’re confident that both companies will be well positioned for continued growth as part of Platinum Equity and Givaudan, respectively.”

ConAgra also has a strong presence in frozen potato and sweet potato product sector, as well as other vegetable, spice and grain products. It supplies its products to restaurants, foodservice operators and commercial customers.