Conagra's $8.1 billion acquisition of Pinnacle furthers its push into a sector that has been a "rare bright spot" for the packaged foods industry.
The company has been able to offset higher supply chain costs by cutting back on discounts and other expenses.
The $285 million sale is another move by Conagra to focus on higher-margin products like Frontera sauces.
The frozen potato products business will become a separate company as ConAgra continues to sharpen its focus on key consumer brands.
