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NEW YORK - ConAgra Foods Inc. said on Monday it would sell its chicken processing business to Pilgrim's Pride Corp. for about $590 million in cash, stock and debt, Reuters reports.
The deal, which is expected to close in the summer, includes $100 million in cash, $235 million in Pilgrim's Pride common stock and $255 million in subordinated notes, payable by Pilgrim's Pride to ConAgra.
Chief Executive Bruce Rohde said the deal will help ConAgra focus on "businesses with higher margin opportunities and low volatility."
Omaha, Neb.-based ConAgra said the deal does not include its Butterball chicken brand or certain prepared chicken products.
The deal will make Pilgrim's Pride the second-largest chicken producer in the U.S., the Pittsburg, Texas-based chicken company said.