Hometown Food Company, a Brynwood Partners Portfolio Company, Agrees to Acquire the Chef Boyardee® Brand from Conagra Brands, Inc.

Rhea-AI Summary

Hometown Food Company, owned by Brynwood Partners IX L.P., has agreed to acquire the Chef Boyardee brand from Conagra Brands (NYSE: CAG) for $600 million. The deal includes an 820,000 square foot facility in Milton, PA, with 500 employees. The transaction is expected to close in Q2 2025. Chef Boyardee, a century-old brand known for shelf-stable meals like Beef Ravioli and Beefaroni, will join Hometown's portfolio of brands including Pillsbury, Hungry Jack, and Birch Benders. Post-acquisition, Hometown will have annual gross revenues exceeding $1.6 billion and operate four manufacturing facilities with approximately 1,500 employees. This marks Brynwood's largest acquisition in its 40-year history, expanding its total network to 20 U.S. facilities, 5,500 employees, and over $3.7 billion in annual sales.

Positive

• Strategic acquisition of iconic Chef Boyardee brand for $600 million strengthens Hometown's market position
• Addition of 820,000 square foot manufacturing facility and 500 employees expands production capacity
• Post-acquisition annual gross revenues will exceed $1.6 billion
• Strong distribution network across U.S., Canada, and Puerto Rico
• Potential for brand reinvigoration and new format expansion

Negative

• Significant capital outlay of $600 million for the acquisition
• Integration challenges with new facility and workforce
• Transaction subject to regulatory review and approval
• Competitive pressure in the shelf-stable meals category

Insights

Financial Analyst

Conagra's $600M divestiture of Chef Boyardee streamlines portfolio but impact depends on proceeds allocation and growth replacement strategy.

Conagra Brands' $600 million divestiture of Chef Boyardee represents a significant portfolio reshaping for the consumer packaged goods giant. This transaction strategically removes a mature, likely slower-growth legacy brand from Conagra's lineup while providing substantial liquidity that can be strategically redeployed.

The deal's structure is comprehensive, including not just the iconic brand but also an 820,000 square foot manufacturing facility and approximately 500 employees in Milton, PA. This operational streamlining could improve Conagra's manufacturing efficiency and cost structure going forward.

For investors, the key question centers on how Conagra plans to utilize the $600 million influx. Potential applications include debt reduction, share repurchases, dividend support, or—perhaps most importantly—reinvestment in faster-growing categories that better align with evolving consumer preferences. The shelf-stable meal category has faced headwinds as consumers increasingly favor fresher options.

While Chef Boyardee maintains category leadership and strong brand recognition developed over its century-long history, the divestiture signals Conagra's strategic prioritization toward segments with higher growth potential. This follows industry-wide trends where major food manufacturers are pruning portfolios to focus resources on higher-growth, higher-margin businesses.

The transaction's overall impact on Conagra's financial outlook remains to be determined, as the press release doesn't specify Chef Boyardee's contribution to revenue or profitability. Investors should watch for updated guidance following the expected Q2 2025 closing, along with management's articulation of how this strategic move fits into Conagra's longer-term growth strategy.

GREENWICH, Conn., May 1, 2025 /PRNewswire/ -- Brynwood Partners IX L.P. announced today that its portfolio company, Hometown Food Company, has entered into a definitive agreement to acquire the Chef Boyardee® brand for $600 million from Conagra Brands, Inc. (NYSE: CAG). The transaction includes the 820,000 square foot facility in Milton, PA, as well as all assets and operations dedicated to the Chef Boyardee brand. The transaction is expected to close in the second quarter of 2025, subject to customary U.S. regulatory review.

Chef Boyardee is an iconic American brand and category leader in shelf-stable meals, including both canned and microwave formats. The business has a rich heritage spanning over 100 years. The brand began when the renowned Chef, Hector Boiardi, immigrated from Italy to the U.S. in the early 1900s. Known for its delicious family-friendly recipes, the brand has earned generations of consumer trust and is universally recognized for its Beef Ravioli, Spaghetti & Meatballs, Mini Ravioli, and Beefaroni products. Chef Boyardee products are primarily sold in the grocery, mass retailer and dollar store channels across the U.S. and have a strong presence in Canada and Puerto Rico. The business's Milton, PA manufacturing facility, with its approximately 500 employees, will complement Hometown's three existing manufacturing facilities.

Hometown Food Company was formed by Brynwood in 2018 to acquire a portfolio of brands from The J.M. Smucker Company, including the U.S. rights to the Pillsbury shelf stable baking products, Hungry Jack pancake mixes and syrups, Martha White and White Lily. Since then, Hometown has furthered its product offerings through the acquisition of Arrowhead Mills from The Hain Celestial Group, Inc. in 2019, the merger with De Wafelbakkers in 2022, and the acquisition of Birch Benders from Sovos Brands, Inc. in 2023. With Chef Boyardee, Hometown will have annual gross revenues exceeding $1.6 billion, and have four manufacturing facilities across the Northeastern, Midwestern, South Central, and Southeastern U.S., supported by approximately 1,500 employees.

"The Chef Boyardee acquisition marks the single largest acquisition in Brynwood's 40-year history," said Henk Hartong, Chairman and CEO of Brynwood Partners. "We are excited to add the iconic Chef Boyardee brand to the Hometown collection of nostalgic brands that offer a longstanding rich heritage. We have grown the Hometown portfolio by nearly twofold since we formed the business and are confident that we can reinvigorate the Chef Boyardee brand and extend into new formats quickly."

"We are thrilled to welcome Chef Boyardee into the Hometown family and will run the business from our corporate headquarters in Chicago," said Tom Polke, President and CEO of Hometown Food Company. "We look forward to working with the Conagra team to effect a smooth transition of the business."

The Brynwood Partners portfolio also includes Harvest Hill Beverage Company, Carolina Beverage Group, Great Kitchens Food Company, West Madison Foods, and Miracapo Pizza Company. Chef Boyardee increases the total Brynwood manufacturing network to 20 U.S. facilities, approximately 5,500 employees and over $3.7 billion in annual sales. Four of Brynwood's portfolio companies are based in in the Chicagoland area and are supported by six factories. The transaction further solidifies Brynwood's reputation as the premier corporate carveout partner, having completed over 60 brand acquisitions from more than 20 different corporate sellers in its over 40-year history.

Brynwood Partners was represented by Holland & Knight LLP on legal matters.

About Brynwood Partners
Based in Greenwich, CT, Brynwood Partners, is an operationally-focused private equity firm that has been making control investments in North American-based lower middle market companies since 1984. The firm targets non-core brands and companies operating in the consumer sector. Brynwood Partners currently manages more than $2.3 billion in assets for its limited partners, which include U.S. and international pension funds, fund-of-funds, endowments, foundations, high net worth family investment offices and financial institutions. For more information, please visit www.brynwoodpartners.com.

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SOURCE Brynwood Partners IX L.P.

FAQ

What is the value of Conagra's (CAG) Chef Boyardee brand acquisition by Hometown Food Company?

Hometown Food Company is acquiring the Chef Boyardee brand from Conagra Brands for $600 million.

When will the Chef Boyardee acquisition by Hometown Food Company close?

The transaction is expected to close in the second quarter of 2025, subject to customary U.S. regulatory review.

What assets are included in the Chef Boyardee acquisition from Conagra (CAG)?

The acquisition includes the Chef Boyardee brand, an 820,000 square foot facility in Milton, PA, and all assets and operations dedicated to the brand, including approximately 500 employees.

What will be Hometown Food Company's revenue after acquiring Chef Boyardee?

After the Chef Boyardee acquisition, Hometown Food Company will have annual gross revenues exceeding $1.6 billion.

How many manufacturing facilities will Hometown Food Company have after the Chef Boyardee acquisition?

Post-acquisition, Hometown Food Company will have four manufacturing facilities across the Northeastern, Midwestern, South Central, and Southeastern U.S.