US: Fresh Del Monte, Pinnacle "eye Del Monte Foods canned unit"
Reports have cited Pinnacle and Fresh Del Monte as potential acquirers
Reports emerged last month Del Monte Foods was exploring the possible sale of its canned food business. Centerview Partners and Morgan Stanley were said to have been hired to assist in the sale of the business.
Reuters yesterday (9 July) cited Pinnacle and Fresh Del Monte as potential acquirers. Unnamed sources said Del Monte is speaking to companies in the food industry about the sale and has not focused on talks with private-equity buyers. The process is said to be still in the "early stages". A deal, Reuters said, could be valued at over US$1.5bn.
A sale of Del Monte's canned food business would allow the firm to focus solely on its pet food business, which includes brands such as Milk-Bone and Kibbles 'n Bits.
Last month, the company signed a merger agreement with Natural Balance Pet Foods, a maker of super-premium pet food for dogs and cats sold throughout North America, Europe and Asia. The deal, Del Monte said, was consistent with its long-term strategy of further strengthening its pet food and snacks brand portfolio.
In its nine-month results in March, the firm saw pet product sales grow by 8% compared to a 0.7% increase in its consumer products division.
Pinnacle Foods declined to comment on the reports, while Fresh Del Monte did not return a request for comment at the time of going to press.
Click here for our Deal or no deal analysis of the potential sale of Del Monte's canned food business.
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
The report presents detailed data on consumption trends in the Artisanal Ice Cream category in United States, analyzing consumption volumes and values. It also provides indispensable data on distribut...
The report presents detailed data on consumption trends in the Impulse Ice Cream category in United States, analyzing consumption volumes and values at segment level. It also provides indispensable da...
The report presents detailed data on consumption trends in the Take Home Ice Cream category in United States, analyzing consumption volumes and values at segment level. It also provides indispensable ...
- Interview part 1: BRF CFO Augusto Ribeiro
- BRICs: The thinking behind Mondelez's Vietnam deal
- Comment: Why Gardein is Pinnacle's ideal fodder
- Deal or no deal: Should Danone buy Mead Johnson?
- Focus: Can BRF deliver aggressive growth?
- Kellogg trumps Abraaj bid for Bisco Misr
- Raisio buys UK, Ireland and Belgium Benecol ops
- Danone, General Mills, Chobani "mislead parents"
- Wrigley opposes Perfetti Van Melle "WTF" TM
- Dutch confirm second bird flu outbreak
- Early Signals: future scenarios that will drive consumption and product innovation over the next five years
- Dairy Product Production in China
- Energy Bars Market in Canada: Market Profile to 2017
- The Snackification of Breakfast
- PepsiCo, Inc. : Consumer Packaged Goods - Company Profile, SWOT & Financial Report