Fresh Del Monte Produce is acquiring the bulk of California-based Del Monte Foods’ assets for $285m under a court-supervised bankruptcy deal.
Fruit and vegetables business Del Monte Foods filed Chapter 11 bankruptcy proceedings in July, when the company said it would seek to find a buyer.
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Fresh Del Monte will secure ownership of Del Monte Foods’ vegetable, tomato and refrigerated fruit businesses, subject to court approval at a hearing slated for 28 January.
Meanwhile, under a similar process, B&G Foods is acquiring Del Monte Foods’ broth and stock operations, including the College Inn and Kitchen Basics brands.
The Fresh Del Monte transaction includes the Del Monte and S&W brands of packaged vegetables; the Del Monte, Contadina, and Take Root Organics ranges of packaged tomato products; the Del Monte brand in refrigerated fruit; and the Joyba ready-to-drink beverage brand.
It also encompasses several production and processing facilities. Fresh Del Monte is set to acquire sites in Texas, Illinois, Wisconsin and Washington in the US, along with two plants in Mexico and one facility in Venezuela, according to a statement.
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By GlobalDataThe deal brings the Del Monte brand “under a single owner for the first time in nearly four decades”, according to Fresh Del Monte.
Fresh Del Monte said it will have global ownership of the Del Monte brand subject to “licensing arrangements across different regions and categories”. That includes all US rights to the Del Monte, S&W, Contadina, and Joyba trademarks, as well as “certain operating assets and employees” in the US, Mexico and Venezuela.
As well as the exclusion of the College Inn and Kitchen Basics brands to be acquired by B&G Foods, the deal also does not include the canned fruit, and other ambient packaged fruit and fruit sauce products for the US, Puerto Rico and Mexico markets under the Del Monte and S&W brands, along with associated assets in those countries, Fresh Del Monte added.
Del Monte Foods has been owned since 2014 by Singapore and Philippines-listed Del Monte Pacific.
Mohammad Abu-Ghazaleh, Fresh Del Monte’s chairman and CEO, confirmed to Just Food that Del Monte Pacific will remain the manufacturer and distributor of the Del Monte brand in the Philippines.
Del Monte Pacific will continue to operate as a separate, independent entity, he said.
Abu-Ghazaleh added in the statement from Fresh Del Monte: “By uniting fresh and shelf-stable food under one strategy, we are honouring the brand’s legacy while supporting it for continued relevance and growth.
“It allows us to show up more consistently for consumers and to build a stronger, more flexible platform focused on efficiency, innovation, and long-term value creation.”
Del Monte Foods issued its own statement confirming the deals, which includes a third with Pacific Coast Producers, the California-based agriculture cooperative.
Pacific Coast Producers will acquire Del Monte Foods’ shelf-stable fruit business assets, excluding production sites. It includes the rights and licences to use the Del Monte and S&W brands for shelf-stable fruit products in the US, Puerto Rico and Mexico.
Commenting on all three transactions, Del Monte Foods’ CEO Greg Longstreet said: “This outcome represents a successful result in our sale process and demonstrates the enduring value of Del Monte Foods’ brands and operations.
“These transactions will create an opportunity for our beloved brands and businesses to thrive under the ownership of three of the leading companies in the food industry.”
