ConAgra Foods Inc said it would sell its private-label foods unit to TreeHouse Foods Inc for $2.7 billion, after struggling to turn around the business it acquired just two years ago.ConAgra's shares jumped as much as 13 percent to $45.86 in premarket trading on Monday. TreeHouse shares were little changed. ConAgra, the maker of Slim Jim beef jerky and Chef Boyardee pasta, became the biggest maker of private label foods in the United States after it bought Ralcorp for $5.1 billion in 2013.But the business has since been plagued by integration costs and customer service issues as well as low profit margins due to cut-price deals Ralcorp had entered into before it was acquired.
ConAgra Foods, Inc. operates as a packaged food company. Shares of CAG remained unchanged at $40.55. In the past year, the shares have traded as low as $33.45 and as high as $45.49. On average, 3393510 shares of CAG exchange hands on a given day and today's volume is recorded at 0.
TreeHouse Foods, Inc. is a consumer packaged food and beverage manufacturing company. Shares of THS remained unchanged at $85.64. In the past year, the shares have traded as low as $69.01 and as high as $92.92. On average, 477352 shares of THS exchange hands on a given day and today's volume is recorded at 0.