31 Jul 2012 --- Unilever 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.

"Bertolli and P.F. Chang's multi-serve frozen meals are excellent additions to our portfolio. We'll use our extensive frozen food and innovation capabilities to grow these great brands even further," said Gary Rodkin, chief executive officer of ConAgra Foods. "Just as our acquisition earlier this calendar year of Odom's Tennessee Pride extended our reach into frozen breakfasts, the addition of Bertolli and P.F. Chang's brands can bring us new consumers and new eating occasions."

When complete, this acquisition will support ConAgra Foods' growth strategy, which includes growing its core businesses and expanding into adjacent categories, building its private label business and continuing to develop its international presence. This will be the fifth acquisition in the last 12 months for ConAgra Foods, following the acquisitions of National Pretzel Company, Del Monte Canada, Odom's Tennessee Pride and the pita chip business of Kangaroo Brands.

The Bertolli and P.F. Chang's frozen meals are currently produced in a Unilever facility that is not included in the sale. As part of the acquisition, key manufacturing equipment will be relocated to an existing ConAgra Foods facility.

The acquisition, which is expected to close within the next 30-60 days subject to customary closing conditions, does not alter ConAgra Foods fiscal 2013 financial goals; the company expects fiscal 2013 EPS, adjusted for items impacting comparability, to grow 6-8 percent over the comparable fiscal 2012 EPS of $1.84. The company also continues to expect fiscal 2013 operating cash flow to exceed $1.2 billion.