Unilever has offloaded its frozen meals business in North America to ConAgra Foods, the consumer goods giant announced today (30 July).
The US$265m sale of products sold under brands including Bertolli and P.F. Chang's was part of Unilever's strategy of selling off its frozen food assets.
In 2010, Unilever quit the frozen food sector in Europe, with the sale of a business in Italy. It sold off the bulk of its European frozen food business in 2006 to private-equity firm Permira in a transaction that included the Birds Eye and Iglo brands.
Nevertheless, the deal with ConAgra is Unilever's latest disposal in North America. In October, Unilever sold four US food brands to local company B&G Foods.
Unilever Agrees to Sell Frozen Meals Portfolio in North America
London & Rotterdam – July 30, 2012 – Unilever today announced that it has signed a definitive agreement for the sale of its North America frozen meals business to ConAgra Foods, Inc. for a total cash consideration of $265 million. Unilever's North America frozen meals business consists of a full range of premium, multi-serve frozen entrees and appetizers under the well-known Bertolli and P.F. Chang's brand names.
The transaction, subject to regulatory review, includes a license for the use of the Bertolli brand name and the transfer of Unilever's existing license with P.F. Chang's for use of the P.F. Chang's Home Menu brand name. It does not include Unilever's facility in Owensboro, Ky., at which the Bertolli and P.F. Chang's frozen meals are currently produced. Unilever will retain the Bertolli trademark and continue its existing pasta sauce business, with manufacturing operations remaining at its Kentucky facility.
Kees Kruythoff, president of Unilever North America, said: "Bertolli and P.F. Chang's frozen meals are two attractive businesses with a focus on quality ingredients and differentiated technology. I am confident they will continue to do well under ConAgra Foods' management."
The company's decision to divest its North American frozen meals business is in line with its global strategy to exit the frozen foods business. Unilever previously divested its European frozen foods business.
In 2011, the combined Bertolli and P.F. Chang's brands had turnover of approximately $300 million. The transaction is expected to close in the third quarter of 2012.
