ConAgra has not disclosed the terms of the latest transaction but said Kangaroo Brands’ pita chips business generates approximately $20m in annual revenues.
Pita chips are a high-growth category
The deal includes a factory in Milwaukee and about 50 "production and administrative employees", said ConAgra, which said pita chips were "experiencing double-digit growth".
However, Kangaroo Brands will continue to own and market its pita bread and frozen sandwiches.
"Pita chips are a high-growth category and a natural fit with ConAgra Foods' private label snacks business," said ConAgra chief executive Gary Rodkin.
"We are pleased to add another business that further positions us for accelerated growth."
A pipeline of alternatives to Ralcorp…
ConAgra, which made multiple abortive attempts to buy Ralcorp last year , would be pursuing a “pipeline of alternatives” after walking away from Ralcorp, said Rodkin last year.
Speaking at ConAgra’s third quarter earnings call in late March this year, chief financial officer John Gehring said: “We have said that growth is a priority, and we are focused on strategic adjacencies, international and private label.
“We will continue to pursue acquisition opportunities where there is a strategic fit and a good financial return.”
Kangaroo Pita Chips
Kangaroo Brands was launched in 1979 (it was originally called Peta Bakeries and changed its name in 1983) and is owned by two brothers: John and George Kashou.
The firm, which is a leading supplier of pita bread, made its move into pita chips/snacks just over five years ago after acquiring a building on Milwaukee's North Side to produce chips in 2006.
Its baked pita chips contain 40% less fat and 25% less sodium than other brands, claims the firm.
