A transaction also could include the Egg Beaters and Odom’s Tennessee Pride brands, people familiar with the matter told The Wall Street Journal.
To be sure, it’s no done deal that Conagra will sell any of the three units to JBS, the biggest beef processor in the U.S., or at all.
If a deal does transpire, it’s probably not coming in the next few weeks, the sources said.
A $700 million deal is small for a company the size of Conagra, which has a market capitalization of $17 billion. So it’s no surprise that the news didn’t move the Chicago foods titan’s stock too much. It recently traded little changed at $36.06.
The stock has climbed 31% in the past year through Tuesday, as consumers stocked up on groceries during the COVID pandemic. It has firmed just 1% in the past six months amid investors' enthusiasm about vaccines distribution and hopes for economic recovery.
JBS's American depositary receipts closed Tuesday trading at $9.70, up 3.85%.
In an interview with TheStreet.com Founder Jim Cramer last month, Conagra Chief Executive Sean Connelly said the eat-at-home trend is here to stay.
For the quarter ended Nov. 29, Conagra reported adjusted earnings of 81 cents a share, beating the FactSet analyst consensus of 74 cents.
Net sales increased to $3 billion from $2.82 billion, with the latest figure almost matching FactSet's call for $2.99 billion.