Conagra Brands has divested its Lender’s Bagels business unit to Bimbo Bakeries USA for an undisclosed figure.
Lender’s Bagels markets a range of refrigerated and frozen bagels in the US, and Conagra acquired the brand as part of its $10.9 billion purchase of Pinnacle Foods in 2018.
The divestiture was initially announced in Conagra’s second-quarter results last month, with Conagra estimating that the transaction would be completed in the third quarter of its 2020 fiscal year. Conagra also stated that it estimates the divestiture will reduce net sales by approximately $50 million.
According to Conagra, the divestiture will include the Lender’s brand and related intellectual property, the business’s production facility in Mattoon, Illinois, and its full inventory.
This latest sale follows on from the company’s decision to offload its direct-store-delivery (DSD) snacks business to Utz Quality Foods in September 2019, another business unit acquired as part of the Pinnacle Foods purchase.
The DSD snacks business included brands such as Tim’s Cascade Snacks, Hawaiian Snacks, Erin’s, Snyder of Berlin and Husman’s, and Conagra stated at the time that the divestiture would help the company focus on its core business operations.
Sean Connolly, Conagra Brands CEO, said: “We continue to reshape our portfolio and focus our resources on priorities that support Conagra’s business strategy and create value for shareholders.”
© FoodBev Media Ltd 2020