Conagra Brands is set to divest its legacy Chef Boyardee shelf-stable pasta business to Hometown Food Company for $600 million in cash.
The US-based frozen foods and snacks manufacturer announced that this deal encompasses all assets associated with the brand, including a production facility located in Milton, Pennsylvania.
Hometown Food Company, a portfolio business of private-equity firm Brynwood Partners, expects the transaction, which includes the 820,000 square-foot plant, to finalize in the second quarter of 2025, pending regulatory approval.
However, it’s noteworthy that frozen skillet meals under the Chef Boyardee brand will not be part of the sale; instead, they will be licensed to Conagra by Hometown Food Company.
Chef Boyardee offers a range of products in both canned and microwave formats, including beef ravioli, spaghetti and meatballs, mini ravioli, and ‘beefaroni.’ These products are predominantly distributed through grocery stores, mass retailers, and dollar store chains in the US, with additional markets in Canada and Puerto Rico, according to Hometown Food Company.
In fiscal year 2024, Chef Boyardee’s shelf-stable products generated approximately $450 million in net sales for Conagra.
The Milton facility, which employs about 500 individuals included in the deal, will operate alongside Hometown Food Company’s three existing manufacturing sites.
Sean Connolly, president and CEO of Conagra, remarked, “The Chef Boyardee divestiture marks another milestone in reshaping the Conagra Brands’ portfolio for better long-term growth while also paying down debt.”
He added, “Despite the uncertain external environment, Conagra remains proactive in its pursuit of shareholder-value creation. By deepening our focus on our leading, growth-oriented frozen and healthy-snacking businesses, we continue to build a more focused company with modern consumer brands.”
Brynwood Partners CEO and chairman Henk Hartong highlighted the Chef Boyardee acquisition as the “single largest” in the firm’s 40-year history.
He stated that the shelf-stable meal brand will join the Hometown portfolio, which has nearly doubled since its inception, emphasizing that the company aims to “reinvigorate the Chef Boyardee brand and extend into new formats.”
Founded by Brynwood Partners in 2018, Hometown Food Company acquired a selection of bakery and desserts assets from JM Smucker.
It subsequently acquired the Arrowhead Mills baking assets from Hain Celestial in 2019, as well as the pancake and waffles business De Wafelbakkers in 2022 and Birch Benders from Sovos Brands in 2023, with Sovos now owned by The Campbell’s Company.
With the addition of Chef Boyardee, Hometown Food Company is projected to achieve annual gross revenues exceeding $1.6 billion and employ around 1,500 individuals, according to their own statement.
Headquartered in Chicago, Conagra’s brand portfolio includes Duncan Hines, Healthy Choice, Marie Callender’s, Slim Jim, and Angie’s Boomchickapop.
For fiscal 2024, the US group reported a 1.8% decline in net sales and a 2.1% decrease in organic terms, totaling $12.1 billion. Additionally, net income decreased by 49.1%, reaching $347.7 million.
In February, the company revised its forecast for annual sales in 2025 due to supply chain disruptions impacting two product categories.
The company anticipated a decline of around 2% in organic net sales, a revision from earlier guidance projecting a drop ranging from 1.5% at worst to flat at best.
For the third quarter of fiscal year 2025, concluding on February 23, Conagra reported a 6.3% decline in net sales and a 5.2% organic drop, amounting to $2.8 billion.
In the announcement of these results in April, Conagra hinted at potential pricing adjustments to counter any inflationary influences stemming from tariffs imposed on international imports.
