ConAgra Foods to Sell Gilroy Foods & Flavors' Dehydrated & Vegetable Product Operations to Olam International

ConAgra Foods, Inc., announced today that it has reached an agreement to sell its Gilroy Foods &Flavors dehydrated and vegetable product operations to Olam International for $250 million, subject to final working capital adjustments. The seasoning blends and flavors business and supporting plant operations will remain with ConAgra Foods' Commercial Foods reporting segment following the transaction closing.

Under the terms of the agreement, ConAgra Foods will sell substantially all of the assets of Gilroy Foods &Flavors' dehydrated garlic, onion, capsicum and Controlled MoistureTM, GardenFrost(R), Redi-MadeTM and fresh vegetable operations, all of which are part of the Commercial Foods reporting segment. Sales for those operations were approximately $300 million in fiscal 2010. The transaction is expected to close within 30 to 60 days subject to satisfaction of customary closing conditions, including normal regulatory approvals, with ConAgra Foods continuing to operate the business until that time.