CANADA: ConAgra acquires Del Monte Canada
ConAgra CEO Rodkin says the acquisition will grow the company's fruit portfolio
US food group ConAgra Foods has agreed to buy Del Monte Canada from private-equity firm Sun Capital Partners.
The deal will see ConAgra acquire all Del Monte branded packaged fruit, fruit snacks and vegetable products in Canada, as well as Aylmer tomato products, from an affiliate of Sun Capital Partners for an undisclosed sum.
"The acquisition of Del Monte Canada supports our strategic growth plan," ConAgra CEO Gary Rodkin said. "It will grow our position in North American tomato products, expand our vegetable product line and add packaged fruit and fruit snacks to our portfolio."
The deal also includes a manufacturing facility and headquarters in Toronto. Del Monte Canada has 190 employees and fiscal 2011 revenue of approximately C$150m (US$148m), according to ConAgra. It was previously known as CanGro Foods, a business created when Sun Capital acquired former Kraft Foods assets in Canada in 2006.
Marc Leder, co-CEO at Sun Capital Partners, said: "We took an unprofitable business and reinvented it by tapping into the underlying brand value and keeping a focus on innovation and the consumer's needs.
"Today, Del Monte Canada is a profitable business well positioned for future growth. ConAgra Foods is an ideal owner for this business given their expertise in the tomato category and their presence in Canada."
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