Fresh Del Monte Produce announced that it has completed the acquisition of select assets of Del Monte Foods Corporation II Inc. and its affiliates for approximately US$285 million. The transaction was approved by the United States Bankruptcy Court for the District of New Jersey following a court-supervised sale under Section 363 of the U.S. Bankruptcy Code. It is being funded through a combination of cash on hand and availability under the company's revolving credit facility.
The transaction brings the Del Monte® brand under one owner for the first time in nearly four decades. Fresh Del Monte stated that aligning fresh and shelf-stable products will support a coordinated global strategy.
© Fresh Del Monte
The company expects the transaction to support brand consistency across categories, expand consumer reach, improve operational efficiency and cost structure, and enable product development across fresh and packaged segments. It also aims to support additional growth through brand extensions and licensing.
Mohammad Abu-Ghazaleh, chairman and chief executive officer, said the transaction allows the company to move forward with a unified approach across fresh and packaged categories.
Under the agreement, Fresh Del Monte will assume certain liabilities and acquire global ownership of the Del Monte brand, subject to existing licensing arrangements. The company will also acquire prepared and packaged food businesses, including Del Monte and S&W® packaged vegetables, Del Monte and Contadina® packaged tomato products, and Del Monte refrigerated fruit products.
The acquisition includes operations across North America and international markets, with facilities in Texas, Illinois, Wisconsin, and Washington, as well as two manufacturing sites in Mexico and one operation in Venezuela. The transaction also includes customer and supplier contracts, inventory, operating assets, and employees.
Assets not included in the transaction are canned fruit and other ambient packaged fruit products for the United States, Puerto Rico, and Mexico, as well as the College Inn® and Kitchen Basics® brands and their related assets.
Following completion, the acquired businesses will be placed within a dedicated business unit. The company stated that there will be no immediate changes to products, packaging, or distribution, with integration to be carried out over time.
For more information:
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Claudia Pou
© Del Monte (Holland) BVVice President
Fresh Del Monte Produce
Email: [email protected]
www.investorrelations.freshdelmonte.com
Investor Relations Contact:
Christine Cannella
Fresh Del Monte Produce
Email: [email protected]
