Singapore- and Manila-listed Del Monte Pacific Ltd has entered into an agreement to acquire the consumer foods unit of Del Monte Foods for US$1.68bn.

Del Monte Foods’ canned food business pulls in around $1.8bn in sales annually, representing about half of the company’s revenue. 

The division includes items such as fruit cups, canned vegetables and broths. It owns brands including Del Monte, Contadina and College Inn. The unit holds the number one position in the US canned fruit and vegetable categories and number two positions in canned tomato and broth categories.

DMPL said the acquisition allowed it to scale up in the US and Latin America and the firm expects the deal will unlock “meaningful” synergies.

“This landmark transaction offers DMPL greater access to a well-established, attractive and profitable branded consumer food business in the world’s biggest market. Prior to this acquisition, the US was one of few key markets where our company did not have a direct presence nor have its own brands,” Rolando Gapud, DMPL chairman, commented.

In its full-year results, released in June, Del Monte Foods revealed the consumer brands business saw sales growth of 1.1%. DMPL indicated that it plans to accelerate growth in the US by growing the product line-up to include beverage and culinary products as well as products that appeal to the “large and fast growing” Hispanic and Asian American population.