US-based ConAgra Foods has completed the spin-off its Lamb Weston business to become a singularly focused, consumer branded food company.
The company has been changed to Conagra Brands to reflect the new direction and streamlined focus.
Conagra Brands president and chief executive officer Sean Connolly said: “This marks an exciting new chapter for Conagra. We are now a pure-play company with a renewed focus on capturing growth and driving shareholder value.
“This has been a time of tremendous change and I want to thank all of our employees for their efforts and determination during this transformation.”
Its common stock continues to trade on the New York Stock Exchange under the ticker symbol “CAG”, while Lamb Weston Holdings now becomes an independent company.
Conagra Brands’ annualized net sales are expected to be approximately $8bn.
In November 2015, ConAgra announced that it would spin off Lamb Weston into a separate entity and list it on the stock exchange.
The two companies considered following Reverse Morris Trust structure for the deal. The structure enables to make a tax-free deal, in which a company mergers with a spun-off business.
In June, The Wall Street Journal reported that cereal maker Post Holdings had held discussions to merge with ConAgra Foods’ Lamb Weston frozen potato business.
A potential deal between ConAgra and Post Holdings could see a valuation of about of $6bn for Lamb Weston, Reuters reported citing a source with knowledge of the matter.
In the same month, ConAgra Foods announced that it would invest $200m to expand operations at its Lamb Weston’s facility in Richland, Washington, US.
The expansion included an addition of a new french fry processing line at the plant.