ConAgra Foods has entered into an agreement with Platinum Equity to sell its food ingredient sourcing and distribution company JM Swank for an undisclosed sum.
The sale of JM Swank is part of ConAgra's strategy to restructure its businesses as it struggles with poor demand for its products.
ConAgra president and chief executive officer Sean Connolly said: "Our goal continues to be driving greater shareholder value by making ConAgra Foods a more focused and higher performing company.
"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."
Connolly said that he expects JM Swank to remain as an important ConAgra supplier and customer following the completion of the transaction.
Wells Fargo Securities acted as an exclusive financial advisor to ConAgra on the transaction.
Last year, ConAgra sold its private-label operations to TreeHouse Foods for $2.7bn. This sale was intended to help the company focus better on its core offerings.
The $2.7bn transaction, included sale of most of ConAgra's private label businesses that are categorized as discontinued operations. These operations include 32 production units in the US, Canada and Italy.
In March this year, ConAgra' Lamb Weston business invested $30m to expand operations at its facility in Boardman, Oregon.
The expanded facility intends to increase the processing capacity to make formed products such as hash brown patties and potato puffs.
In May, it entered into an agreement to sell its Spicetec Flavors & Seasonings business to Givaudan for $340m.
Alpha Baking acquired two bakeries from ConAgra Foods in April for an undisclosed sum. The two facilities are located on the northwest side of Chicago, Illinois and in Grand Rapids, Michigan.