ConAgra Foods Inc, the $12.4-billion US food conglomerate, yesterday said that it would buy Unilever Plc's North American frozen meal business for $265 million.

The deal includes a license for the use of the Bertolli brand name and the transfer of Unilever's existing license with P F Chang's for use of the P F Chang's Home Menu brand name.

The Anglo-Dutch company said that the sale does not include its facility in Owensboro, Kentucky, at which the Bertolli and P F Chang's frozen meals are currently produced.

Unilever will retain the Bertolli trademark and continue its existing pasta sauce business, with manufacturing operations remaining at its Kentucky facility.

In 2011, the combined Bertolli and P F Chang's brands had turnover of approximately $300 million.

Kees Kruythoff, president of Unilever North America, said, "Bertolli and P F Chang's frozen meals are two attractive businesses with a focus on quality ingredients and differentiated technology. I am confident they will continue to do well under ConAgra Foods' management."

Unilever, based in the Netherlands, said that the decision to divest its North American frozen meals business is in line with its global strategy to exit the frozen foods business. Unilever previously divested its European frozen foods business.

The acquisition will expand ConAgra Foods' frozen food brands such as Marie Callender's, Banquet, Healthy Choice and Kid Cuisine, with the addition of the Bertolli and P F Chang's brand names and the Italian and Asian food they bring to the portfolio. 

ConAgra Foods expects the acquisition to provide significant growth opportunities in the frozen food category.

''Bertolli and P F Chang's multi-serve frozen meals are excellent additions to our portfolio. We'll use our extensive frozen food and innovation capabilities to grow these great brands even further,'' said Gary Rodkin, chief executive officer of ConAgra Foods.

This will be the fifth acquisition in the last 12 months for ConAgra, following the purchases of National Pretzel Company, Del Monte Canada, Odom's Tennessee Pride and the pita chip business of Kangaroo Brands.

Omaha, Nebraska-based ConAgra is one of North America's leading food companies, with brands in 97 per cent of America's households.

It also supplies frozen potato and sweet potato products as well as other vegetable, spice and grain products to a variety of well-known restaurants, foodservice operators and commercial customers.