Del Monte Pacific has acquired US produce group Sager Creek Vegetable Company through its US subsidiary Del Monte Foods for US$75m.
The deal comes into effect today (11 March), the company said in a statement.
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Sager Creek produces speciality vegetables for foodservice and retail customers. The business is currently headquartered in Siloam Springs, Arkansas, and operates manufacturing operations in North Carolina. Brands include Veg-All, Freshlike, Popeye, Princella and Allens', among others.
"The acquisition of Sager Creek’s business provides Del Monte access to new customers and new retail product offerings and the opportunity to expand on Sager Creek’s foodservice business platform, while driving significant operating synergies in our network of vegetable production facilities," Del Monte Foods said.
The deal will be financed through Del Monte Foods' revolving credit facility.
In a separate announcement, parent group Del Monte Pacific booked higher nine-month net losses today due to increased finance and acquisition expenses related to its acquisition of Del Monte Foods. Operating profit and sales were, however, up on last year and the company said it is taking steps to strengthen its balance sheet.
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By GlobalDataClick here to view Del Monte Pacific's 9M results.
