ConAgra Completes Gilroy Sale

OMAHA, NEConAgra Foods, Inc., has completed the sale of its Gilroy Foods & Flavors dehydrated and vegetable product operations to Singapore-based Olam International, a global integrated supply-chain manager and processor of agricultural products and food ingredients. Con Agras Spicetec® seasoning blends and flavors business and supporting plant operations were not part of the sale and will stay with ConAgra Foods' Commercial Foods reporting segment.

Under the terms of the agreement, ConAgra Foods sold substantially all of the assets of Gilroy Foods & Flavors' dehydrated garlic, onion, capsicum and Controlled Moisture, GardenFrost®, Redi-Made, and fresh vegetable operations. Sales for those segments totaled approximately $300 million in fiscal 2010. The manufacturing facilities purchased by Olam include: Gilroy, Hanford and Modesto, CA; Fernley, NV; Las Cruces, NM; and Umatilla, OR. The sale also included a warehouse in King City, CA. The sale did not include manufacturing facilities that produce seasoning blends and flavors including the Carol Stream, IL, Cranbury, NJ, and Hyrum, UT, plants.

Approximately 1,500 Gilroy employees moved to Olam, including manufacturing-plant personnel and employees supporting the dehydrated and vegetable products business at the Omaha, NE, headquarters and other satellite locations for Gilroy Foods. Greg Estep, formerly president of the dehydrated and vegetable business for ConAgra Foods, is now president of spices and dehydrates for Olam International. Paul Maass, president of ConAgra Mills, is now also in charge of the remaining seasoning blends and flavors business under the Spicetec® Flavors & Seasonings brand.