Conagra will sell frozen seafood brands Van de Kamp's and Mrs. Paul's to Canadian seafood company High Liner Foods in a $55 million deal, officials announced Friday.
Conagra President and CEO Sean Connolly said that the two brands effectively operate as a standalone seafood business, and that the sale would advance the company’s efforts toward “strengthening our core frozen offerings." The move follows the proposed sale of its Chef Boyardee brand for around $600 million.
The latest deal includes the seafood brands’ inventory and intellectual property, but no Conagra production facilities or employees. It is expected to close by the end of next month, and the proceeds would be used to reduce the company’s debt.
"This divestiture reflects our continued commitment to reshaping our portfolio and investing where we see the best opportunities for growth and innovation," Connolly said in a statement.
Nova Scotia-based High Liner, meanwhile, would add the brands to its frozen seafood lineup, which includes the High Liner, Fisher Boy, Mirabel, Sea Cuisine and Catch of the Day labels. The company currently co-manufactures both brands at its U.S. facilities; Paul Jewer, High Liner’s chief executive, said the deal would serve as a “catalyst for further growth in the U.S retail market.”
"By taking full ownership of these well established and respected brands, we will capture additional value for our shareholders and ensure a seamless transition for existing customers,” Jewer said in an announcement. “We look forward to offering choice and value to an expanded portfolio of customers and consumers in the growing U.S market."
