Conagra Brands Inc. entered into a definitive agreement with Hometown Food Company, a portfolio company of Brynwood Partners, to divest its line of Chef Boyardee brand shelf-stable products, according to a press release.

“The transaction includes the manufacturing facility in Milton, Penn., as well as all assets and operations dedicated to the Chef Boyardee shelf-stable products with the exception of frozen skillet meals, which will be licensed by Hometown Food Company to Conagra. The Chef Boyardee products that are part of the transaction contributed approximately $450 million USD to Conagra's fiscal year 2024 net sales,” Conagra said.

The divestiture is subject to customary closing conditions, including the receipt of any applicable regulatory approvals. The sale price is $600 million in cash and is expected to close in Q1 of Conagra's fiscal year 2026.

“The Chef Boyardee divestiture marks another milestone in reshaping the Conagra Brands portfolio for better long-term growth, while also paying down debt. Despite the uncertain external environment, Conagra remains proactive in its pursuit of shareholder-value creation. By deepening our focus on our leading, growth-oriented frozen and healthy-snacking businesses, we continue to build a more focused company with modern consumer brands,” said Sean Connolly, president and chief executive officer of Conagra Brands.

Conagra said it expects to use the net proceeds from the transaction to pay down debt, and that it will further discuss the transaction and its impact on fiscal year 2026 when it releases its fourth quarter results.