Conagra Brands, Inc.CAG has terminated the Wesson oil business spin-off deal with The J.M. Smucker Company. Shares of the company slipped nearly 1.4% to $37.77 as of Mar 7, after the divestment cancellation news surfaced.
Conagra's Wesson is a premium edible oil brand in the United States. The company offers canola, corn, vegetable and blended oils under this brand.
Over the last month, Conagra's shares have rallied 6.2%, outperforming 1.3% growth recorded by the industry .
Inside the Headlines
As noted, on Mar 5, 2018, the Federal Trade Commission challenged the feasibility of the pending divestiture of Conagra's Wesson oil business. Following this, the company decided to continue running its Wesson oil business, considering the best interests of the company's employees, customers and shareholders.
It was on May 30, 2017, the company had signed a definitive agreement with The J.M. Smucker Company for divesting its Wesson oil business for nearly $285 million. The company had claimed this move to be in sync with its portfolio-reshuffling strategy and intended to utilize the spin-off proceeds to fund new growth programs and provide higher returns to shareholders. Per the spin-off agreement, the company was supposed to operate this business up to one year, following the deal's closure.
Stocks to Consider
Some better-ranked stocks in the same space are listed below:
Post Holdings, Inc. POST sports a Zacks Rank of 1 (Strong Buy). The company's earnings per share (EPS) are projected to grow 14% in the next three to five years. You can see the complete list of today's Zacks #1 Rank stocks here .
US Foods Holding Corp. USFD also flaunts a Zacks Rank of 1. The company's EPS is predicted to be up 18.90% over the next three to five years.
United Natural Foods, Inc. UNFI also carries a Zacks Rank of 1. The company's EPS is estimated to rise 6.20% during the same time frame.
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