ConAgra ( CAG - Get Report) agreed to sell its refrigerated-meats businesses to Smithfield Foods ( SFD) in a $575 million deal.

The sale includes the Butterball, Eckrich, Armour, LunchMakers, Margherita and Longmont brands, as well as most of the associated assets, including plants and inventory. The combined annual sales for the operations are about $1.8 billion.

Under the agreement, ConAgra will get $475 million in cash and $100 million in Smithfield stock. ConAgra will keep the Hebrew National brand and products, Brown 'N Serve frozen sausage and its Slim Jim and Pemmican meat snacks.

"This sale is a significant milestone for ConAgra Foods and part of an ongoing process to simplify our operations and to focus our efforts on areas of our portfolio where we have the greatest opportunities," said Gary Rodkin, ConAgra's president and chief executive.

Smithfield plans to separate the Butterball turkey business and operate it through Carolina Turkeys, a partnership the company has with Maxwell Farms. Smithfield owns 49% of Carolina Turkeys.

"This acquisition furthers our strategy of growing the packaged-meats side of our business with higher-value, further-processed and precooked products," said C. Larry Pope, president and chief operating officer of Smithfield.

Shares of ConAgra slipped 20 cents, or 0.9%, to $21.54. Smithfield was unchanged at $28.69.