The agreement involves transition of around 280 employees and facilities in Cranbury, New Jersey and Carol Stream in Illinois.
The transaction is subject to customary closing conditions and regulatory approvals. The deal is slated to be closed in around 60 to 90 days.
ConAgra Foods president and CEO Sean Connolly said: "We are committed to becoming a more focused and higher performing company in order to drive greater shareholder value. Divesting Spicetec is the latest action we have taken that will allow ConAgra Foods to invest resources into our core product portfolio to drive sustainable growth.
Connolly added: "We truly appreciate the contributions of the Spicetec employees and look forward to having an ongoing relationship with them as a key supplier to ConAgra Foods."
For this transaction, BofA Merrill Lynch served as the exclusive financial advisor to ConAgra Foods.
Last year, ConAgra sold its private-label operations to TreeHouse Foods for $2.7bn.. This sale was intended to help the company focus better on its core offerings.
The $2.7bn transaction, included sale of most of ConAgra's private label businesses that are categorized as discontinued operations. These operations include 32 production units in the US, Canada and Italy.
In March this year, ConAgra Foods' Lamb Weston business invested $30m to expand operations at its facility in Boardman, Oregon.
The expanded facility intends to increase the processing capacity to make formed products such as hash brown patties and potato puffs. The facility expansion is planned to result in 50 new jobs.
