Bradley A. Alford and Timothy R. McLevish will be appointed to the board of directors of ConAgra Foods, Inc. (NYSE: CAG), effective no later than July 22. Their additions, urged by hedge fund Jana Partners, which has recently acquired 7.2% of CAG stock, will increase the number of seats on the board from 12 to 14.
“We are pleased to welcome Brad and Tim to the ConAgra Foods board,” said Steven Goldstone, chairman of the Omaha, Nebraska, USA-headquartered company. “Both are seasoned, accomplished veterans of our industry, and we look forward to benefitting from their expertise as we uphold our ongoing commitment to deliver value for all shareholders.”
Sean Connolly, chief executive officer of the diversified food company, said: “We are committed to transforming ConAgra Foods into a focused, higher-margin, more contemporary and higher-performing company.
A cooperation agreement has been inked which calls for ConAgra to nominate Alford and McLevish for election to the board at the company’s upcoming 2015 annual meeting of shareholders, and Jana Partners has agreed to customary standstill and voting commitments. A copy of the cooperation agreement will be filed with the US Securities and Exchange Commission.
Barry Rosenstein, managing partner of Jana Partners, stated, “We are pleased to have worked constructively with ConAgra Foods to appoint Brad and Tim to the Board. They bring a fresh perspective and unique insight to the company. We are very optimistic about the outlook for ConAgra as the company explores all options to create shareholder value.”
Goodbye Private Label
James Lawrence, who partnered with Jana in its ConAgra Foods investment, commented: “As a significant shareholder of ConAgra Foods, I am extremely pleased with the process the board is undertaking to exit private label, improve margins, optimize capital allocation and explore all other paths to value creation. Based on these developments and the company’s constructive engagement with shareholders, I have confidence in the path forward to value creation and believe ConAgra Foods’ future is bright.”
About Brad Alford
Alford, 58, is the former chief executive officer and chairman at Nestlé USA. He has approximately 35 years of experience in the consumer food and packaged goods industry.
Prior to leading Nestlé USA, Alford held a variety of senior leadership positions across the Nestlé organization, including the roles of president and ceo of Nestlé Brands and president of Nestlé USA’s confections and snacks division. He also held various senior roles within Nestlé on a global basis.
About Tim McLevish
McLevish, 60, is the former chief financial officer and executive vice president at Walgreens Boots Alliance, Inc. He has over 15 years of experience in leading the finance organizations of large public companies.
From October 2007 to April 2014. McLevish held various jobs within Kraft Foods Group and Kraft Foods Inc., including the positions of executive vice president and chief financial officer within both organizations. Before joining Kraft he served as senior vice president and chief financial officer of Ingersoll-Rand Company Limited from 2002-07.
