ConAgra Has Feedlots Again – For Now

ConAgra Foods on Sept. 28 took back control of the feedlot business it sold to Swift Foods in 2002.  This covers three feedlots in Greeley, Colo., and another in Idaho.  It is expected that ConAgra will sell the feedlots over the next several months.

The feedlot business was security for about $300 million in financing provided by ConAgra as part of its sale of the red meat business in 2002. That sale created a new company called Swift Foods, whose parent is Swift & Company. 

ConAgra owned a minority interest in Swift Foods.  A private equity group involved in the transaction exercised its option to buy ConAgra’s minority interest in Swift Foods.  The price was $194 million.

Part of the deal is ConAgra will continue to supply cattle to Swift & Company on a transitional basis.