ConAgra Closes Pride Acquisition - Analyst Blog

By Zacks.com,  May 15, 2012, 01:06:53 PM EDT

Recently, ConAgra Foods Inc. ( CAG ) announced closure of its Odom's Tennessee Pride acquisition. The agreement to acquire Odom's Tennessee Pride, the leading producer of frozen and refrigerated breakfast sandwiches and sausage, was announced on April 17, 2012.

Odom's Tennessee Pride, which has the annual revenue of above $190 million and the strength of approx. 750 employees, is the second largest producer of frozen breakfast sandwiches in the U.S. As per the initial agreement, the acquisition includes facilities in Little Rock, Ark., and Dickson, Tenn., and its headquarters office in Madison, Tenn.

The acquisition is expected to strengthen ConAgra's position in frozen meals leveraging the company's existing innovation, marketing and distribution abilities. Moreover, such acquisition also guarantees expansion of ConAgra's portfolio in the growing breakfast category of sandwiches and sausage.

ConAgra has been significantly expanding its business portfolio over time, focusing on branded, value-added opportunities through the acquisition of a number of private labels. Since last year, this is the third acquisition for ConAgra Foods after its acquisition of National Pretzel Company and Del Monte Canada.

This acquisition, backed by the optimism of product line expansion, is expected to offer stiff competition to many of the industry players including, HJ Heinz Co. ( HNZ ) and Kraft Foods Inc . ( KFT ). Moreover, ConAgra's promotional campaigns, strong sales force, dedicated customer-serving teams, and category leadership are anticipated to add depth and dynamism to its new as well as existing product lines.

We hold a 'Neutral' recommendation on ConAgra over the long term. However, ConAgra retains a Zacks #3 Rank, implying a short-term (1-3 months) 'Hold' rating.


 
CONAGRA FOODS (CAG): Free Stock Analysis Report
 
HEINZ (HJ) CO (HNZ): Free Stock Analysis Report
 
KRAFT FOODS INC (KFT): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Business, Stocks

Referenced Stocks: CAG, HNZ, KFT



Latest News Video

Private Island on the Thames: $11.7 Million
Private Island on the Thames: $11.7...
Take Control Of Your Wealth
Take Control Of Your Wealth         
How to Avoid Getting Caught Pre-Defection
How to Avoid Getting Caught Pre-Def...
WSJ House of the Week: And the Winner Is…
WSJ House of the Week: And the Winn...


Sign-in
Existing NASDAQ.com member? Log in here.

By signing into the site using any of the third-party services above, you agree to NASDAQ.com's Terms of Use.




Most Active by Volume:

Company Last Sale Change Net / %
PFE $ 29.40 0.24  0.82%
NOK $ 3.86 0.17  4.61%
S $ 7.32 0.10  1.39%
BAC $ 13.27 0.06  0.45%
GE $ 24.33 0.56  2.36%
MU $ 13.76 0.52  3.93%
SIRI $ 3.40 0.06  1.80%
MNKD $ 6.605 0.94  12.40%