Pet To Sell Orval Kent Food
ST. LOUIS (AP) _ Pet Inc. said Wednesday it has agreed to sell Orval Kent Food Co., part of its refrigerated foods division, to Horizon Partners Ltd. of Milwaukee for an undisclosed amount of cash.
The transaction is part of a Pet divestiture plan announced in May to sell off its refrigerated, snack and health foods businesses and focus on core brands, such as Old El Paso, Progresso, Downyflake and Van de Kamp’s.
The sale of Orval Kent and the positive outcome of ongoing negotations to sell the remainder of the health foods and refrigerated businesses is expected to result in an after-tax charge of $25 million to $30 million, or 24 cents to 29 cents per share, in the fourth quarter.
St. Louis-based Pet initially recorded an after-tax charge of $165.8 million in the second quarter as a result of the divestiture plan. The new charge reflects a lower estimate of proceeds from the divestiture.