NEW YORK (Standard&Poor's) June 9, 2003--Standard&Poor's Ratings Services said today that there would be no effect on the ratings or outlook of leading packaged food manufacturer ConAgra Foods Inc. (BBB+/Stable/A-2) following the company's announcement that it has agreed to sell its integrated fresh chicken business to Pilgrim's Pride Corp. (BB/Watch Neg/--) for approximately $590 million. ConAgra will receive $100 million in cash, $235 million in Pilgrim's Pride class A stock (based on the June 6, 2003, closing price), and $255 million of subordinated notes due in 2011. ConAgra's chicken business represented more than $2.0 billion in sales. The divestiture continues ConAgra's strategy of focusing on its branded packaged food business and transitioning away from commodity proteins.
