Hedge Fund Buys ConAgra’s Commodity Trading Biz

Mar 27 2008 | 8:45am ET

ConAgra Foods has agreed to sell its commodity trading and merchandising operations to a hedge fund run by Ospraie Management. 

In a deal worth $2.1 billion, the Ospraie Special Opportunities fund will take control of the ConAgra Trade Group, which will be renamed Gavilon. 

Under the terms of the agreement, ConAgra will sell the company’s trading and merchandising segment to  the hedge fund in exchange for approximately $1.6 billion in cash and $525 million of payment-in-kind debt securities of Gavilon.

Greg Heckman, president of the ConAgra Foods commercial businesses, will become chief executive of Gavilon upon close of the transaction. Gavilon will remain in its current offices in Omaha, Nebraska and its approximately 950 employees of will remain in place.

“Given our existing and ongoing emphasis on our core strategic food platforms, along with the strength of the commodities cycle, we believe this is an excellent time to exit this business,” said Gary Rodkin, chief executive officer of ConAgra Foods. “The sale gives us a unique opportunity to redeploy capital, largely toward share repurchases.”

John Duryea, portfolio manager of the Ospraie Special Opportunities fund, said, “Through enhanced resource allocation and by pursuing incremental opportunities, Ospraie intends to further grow the business.”

Alternative investment firm Ospraie Management has approximately $9 billion in assets under management.


In Depth

Hedge Fund Veteran Peter Borish Talks Trading

Dec 17 2014 | 9:32am ET

Peter Borish says 2014 was “tricky” from a trading perspective. “The best...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.