ConAgra Sheds Gilroy Foods Unit For $250M

NEW YORK (AP) -- ConAgra Foods Inc. said Monday it agreed to sell its Gilroy Foods & Flavors business to Olam International for $250 million.

Gilroy Foods makes dehydrated and vegetable products, and ConAgra said it had about $300 million in revenue in fiscal 2010. The deal includes manufacturing facilities in California, Nevada, New Mexico, and Oregon, and a warehouse in California. The sale is expected to close in 30 to 60 days, pending regulatory approval.

The assets being sold include Gilroy Foods & Flavors' dehydrated garlic, onion, capsicum and Controlled Moisture, GardenFrost, Redi-Made and fresh vegetable businesses. ConAgra said it will keep the seasoning blends and flavors business and plant operations related to the Gilroy business.

Almost all the employees in Gilroy's Omaha, Neb., headquarters and other Gilroy Foods locations will be transferred to Olam, ConAgra said. It said the sale does not alter long-term financial guidance. The businesses that are being sold will be counted as discontinued operations in the fiscal fourth quarter.

ConAgra shares were unchanged at $24 in aftermarket trading.

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