Conagra Brands has finalised the sale of its 51.8% ownership stake in Agro Tech Foods Limited (ATFL), as part of its ongoing strategy to streamline its portfolio and enhance shareholder value.
The transaction marks the completion of all necessary conditions for the divestiture by one of Conagra’s subsidiaries. With this sale, Conagra will no longer consolidate ATFL’s financial results, which could impact its overall financial reporting and future strategic decisions.
The company has been actively reshaping its business model to adapt to shifting consumer preferences and competitive pressures within the food and beverage sector. Agro Tech Foods is known for its diverse range of products, including snacks and health-focused food items.
The divestiture aligns with Conagra’s broader goal of focusing on its core brands, which include Birds Eye, Duncan Hines and Healthy Choice, among others. The decision to divest comes amid a backdrop of increasing demand for innovation and agility in the food industry, as manufacturers seek to respond to evolving consumer tastes.
Conagra became a controlling shareholder of Agro Tech Foods in 2011, after which Agro Tech Foods accelerated the growth of its food portfolio, including ACT II popcorn and Sundrop foods. These two iconic brands are leaders in their respective categories, and offer a basket of products for both in-home and out-of-home consumption.
However, Agro Tech Foods will continue to use Conagra Foods’ ACT II branding. “Conagra has agreed to continue the perpetual and exclusive license for the ACT II brand in India with ATFL and ATFL will exclusively continue to use the ACT II brand in India,” said the firm in an exchange filing.
Have a news or topic to share with industry? Write to us editorial@pfionline.com
