ConAgra Foods (CAG) Announces Record, Distribution Dates on Lamb Weston Spin; Lifts Stock Buyback to $1.25B

October 11, 2016 8:41 AM EDT

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ConAgra Foods, Inc. (NYSE: CAG) announced the record and distribution dates for the spin-off of its Lamb Weston business, which is expected to be effected through the distribution of 100 percent of the common shares of Lamb Weston to holders of ConAgra Foods’ common shares:

  • Record Date: 5:00 p.m. New York City time, on Nov. 1, 2016
  • Distribution Date: 11:59 p.m., New York City time, on Nov. 9, 2016

The completion of the distribution remains subject to customary closing conditions, including the Securities and Exchange Commission having declared effective Lamb Weston’s Registration Statement on Form 10.

ConAgra Foods also announced today that its board of directors approved an increase to its existing share repurchase program, authorizing $1.25 billion of total expenditures on the program. The authorization is contingent on the completion of the spin-off of the Lamb Weston business and has no expiration date. Shares are expected to be repurchased periodically, depending on market conditions and other factors, through open-market or privately negotiated transactions. This authorization is part of a broader capital allocation strategy that balances debt reduction, a top-tier dividend, share repurchases and strategic growth investments.

“Today’s announcement demonstrates continued progress in the spin-off of the Lamb Weston business as well as ConAgra’s commitment to creating shareholder value,” said Sean Connolly, president and chief executive officer of ConAgra Foods. “It is an exciting time for Lamb Weston and ConAgra Foods.”

ConAgra Foods, Inc. will be renamed Conagra Brands, Inc. upon completion of the spin-off.

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