Chicago, June 23 - ConAgra Foods Inc said on Monday it added $500 million to its share repurchase program, after completing the sale of its trading and merchandising operations for $2.8 billion.
The sale to an affiliate of Ospraie Management, a commodities and basic industries investment management firm, netted ConAgra more than the $2.1 billion it expected when the deal was announced in March because of increases in the trading business's book value.
ConAgra, the maker of Healthy choice meals, Chef Boyardee pasta and other brands, sold the business to focus on its consumer brands and food service business.
Profits in the trading business, a vestige of ConAgra's history as more of a commodity-based company, have helped support ConAgra's profit for several quarters while other parts of its business lagged. But Chief Executive Gary Rodkin said in March that selling the trading unit would address investor concerns over the long-term volatility inherent in the trading business.
ConAgra shares closed up 4 cents at $22.22 on Monday on the New York Stock Exchange.