Financial terms of the transaction, which closed today, were not disclosed. The Elan Nutrition business will be managed as part of ConAgra Foods' Snacks platform and integrated specifically into its Store Brands business, which primarily makes cereal and snack bars sold under retailer labels.
The acquisition of Elan Nutrition, owned by an affiliate of Sun Capital Partners, Inc. since 2003, will allow ConAgra Foods to grow its private label bar business through new product development capabilities and manufacturing capacity. Elan Nutrition's manufacturing facility in Grand Rapids was included in the deal and will operate as a ConAgra Foods plant. ConAgra Foods intends to hire Elan Nutrition employees.
"Acquiring Elan Nutrition allows us to continue growing and expanding our very successful snack bar business within our Consumer Foods portfolio," said Gary Rodkin, CEO, ConAgra Foods. "We are confident in the growth potential of this important category and expect a smooth integration of Elan Nutrition's business and capabilities into our Snacks platform."
ConAgra Foods currently manufactures private label bars at its facility in Lakeville, MN. That facility is not impacted by this acquisition and will continue to operate as normal. Given the relatively small size of the acquisition, this deal does not alter the company's EPS guidance.