OMAHA — ConAgra Foods, Inc. has entered into a definitive agreement to sell its JM Swank business, a national food ingredient sourcing and distribution company, to Platinum Equity, a Los Angeles-based private equity firm. Financial terms were not disclosed.
|Sean Connolly, president and c.e.o. of ConAgra Foods|
“Our goal continues to be driving greater shareholder value by making ConAgra Foods a more focused and higher performing company,” said Sean Connolly, president and chief executive officer of ConAgra Foods. “The divestiture of JM Swank is the most recent step we have taken to allow us to drive growth by continuing to invest in our product portfolio.”
The announcement comes less than two weeks after ConAgra entered into an agreement to sell its Spicetec Flavors & Seasonings business to Givaudan, Vernier, Switzerland, for approximately $340 million.
Mr. Connolly said JM Swank will remain a supplier and customer to ConAgra following the completion of the transaction.
“I’d also like to thank the JM Swank team for all of their many contributions to ConAgra Foods and wish them well in the future,” Mr. Connolly said.
Established in 1954, JM Swank transports 800 million lbs of product each year and provides expertise in sourcing, distribution and logistics to customers nationwide. ConAgra bought the company in 1992.
Since Mr. Connolly took the helm at ConAgra Foods early last year, the company has announced a series of major changes, including the sale of its private brands business to TreeHouse Foods and the separation of its consumer brands and frozen potato businesses into two independent, publicly traded companies . The company also announced plans to lay off 1,500 office-based employees around the world and move its headquarters from Omaha to Chicago.