News Release
ConAgra, Inc.
One ConAgra Drive
Omaha, NE 68102-5001
(402) 595-4000
FOR IMMEDIATE RELEASE
CONAGRA, INC., REPORTS COMPLETION OF
INTERNATIONAL HOME FOODS ACQUISITION
OMAHA, Neb., August 24, 2000 -- ConAgra, Inc. (NYSE: CAG), one of the
world's largest branded foods companies, and International Home Foods (NYSE:
IHF) announced today that ConAgra has completed its acquisition of International
Home Foods.
Bruce Rohde, ConAgra chairman and chief executive officer, said, "We are
excited about the growth prospects of the International Home Foods brand
portfolio as it becomes part of ConAgra's already powerful lineup of products we
offer our customers."
Rohde added, "As we continue to focus on the value-added portion of all of
our businesses and aligning our resources around our retail and foodservice
customers, International Home Foods fits well with our growth objectives. This
deal is a good fit with our strategy."
ConAgra's transfer agent, Wells Fargo Shareowner Services, will soon mail a
Letter of Transmittal to International Home Foods stockholders with instructions
on surrendering their certificates of International Home Foods stock in exchange
for cash and shares of ConAgra stock.
"With a mixture of stock and cash as consideration for this deal," said
Rohde, "ConAgra has preserved its flexibility to pursue other strategic
opportunities while attempting to make a tax-efficient deal for International
Home Foods' shareholders."
For each International Home Foods share, ConAgra will pay $11 in cash and
0.54692 of a ConAgra share. ConAgra will issue approximately 41 million shares
of ConAgra common stock as the stock portion of the consideration. The deal
represents a total value of approximately $2.9 billion, reflecting the
assumption of $1.3 billion in existing IHF debt.
The number of ConAgra shares issued for each IHF share transaction was
determined by dividing $11 by $20.1125, the average closing price of ConAgra
stock from August 4 through August 17 -- the relevant pricing period set by the
merger agreement for determining the conversion rate of ConAgra stock.
ConAgra, Inc., a $25-billion-plus food company, is North America's largest
foodservice manufacturer and second-largest retail food supplier. The company
employs more than 85,000 worldwide and manufactures and markets brands such as
Hunt's, Orville Redenbacher's, Snack Pack, Van Camp's, Peter Pan, Manwich,
Beanee Weenee, Swiss Miss and Knott's Berry Farm.
International Home Foods, Inc. is a nationally prominent manufacturer,
distributor and marketer of food products. Its significant established brands
include Chef Boyardee pasta products, PAM cooking spray, Bumble Bee seafood, and
Gulden's mustard.
