ConAgra Foods Inc said it would sell its private-label 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 were up 1.7 percent at $41.24 in morning trading on Monday after jumping as much as 13 percent before the market opened. TreeHouse fell 5.6 percent to $80.85. "Given how long the process seemed to take and that (TreeHouse) in the end perhaps was the sole negotiating partner, we are slightly relieved for (ConAgra's) sake that the (selling price) was not lower," JPMorgan analyst Ken Goldman said in a note.ConAgra, the maker of Slim Jim beef jerky and Chef Boyardee pasta, became the biggest U.S. manufacturer of private-label foods after it bought Ralcorp for $5.1 billion in 2013.
ConAgra Foods, Inc. operates as a packaged food company. Shares of CAG traded higher by 1.2821% or $0.5199/share to $41.07. 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 1187146.
TreeHouse Foods, Inc. is a consumer packaged food and beverage manufacturing company. Shares of THS fell by 5.24% or $-4.49/share to $81.15. 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 2027600.