US fruit and vegetable company Fresh Del Monte Produce has announced that it has signed an agreement to acquire Del Monte Foods Europe for US$340m in cash from insolvent Italian food company Cirio.

The acquisition includes Del Monte Foods Europe’s operations in Europe, Africa and the Middle East. The acquisition is expected to close by the fourth quarter of 2004.

Fresh Del Monte said its acquisition of Del Monte Foods Europe will add approximately $370m of sales and a number of new products and brands to Fresh Del Monte’s existing portfolio of fresh and fresh-cut produce. In addition, the company said the acquisition strengthens its presence in Europe and other key markets.

As part of the deal Fresh Del Monte will also acquire the licence to use the Del Monte brand for processed and/or canned food products in more than 100 countries throughout Western, Central and Eastern Europe, Africa, and the Middle East.

“Our acquisition of Del Monte Foods Europe represents a unique opportunity for us to leverage the tremendous potential of the Del Monte brand across a wide range of high-growth markets, including Eastern Europe and Russia,” said Fresh Del Monte’s CEO, Mohammad Abu-Ghazaleh.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Tick here to opt out of curated industry news, reports, and event updates from Just Food.

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“Bringing Fresh Del Monte and Del Monte Foods Europe together creates a wealth of exciting growth prospects for us, as well as important cost, selling, and marketing synergies. It is also consistent with our sharp focus on diversifying our business across products and geographies to increase revenues and reduce earnings volatility in our business,” Abu-Ghazaleh continued.

“While many of the assets that we will acquire have not been operating at full capacity, we are confident that we will be able to energise these operations and drive strong profitability in the future,” he added.