Fresh Del Monte acquires fresh and shelf-stable brands as Del Monte Foods chooses three buyers

Del Monte Foods has agreed to sell most of its business to three buyers through a court-supervised auction, setting the stage for new ownership of many brands that are staples for retail and foodservice. Fresh Del Monte Produce Inc., B&G Foods Inc. and Pacific Coast Producers will separately acquire the assets of Del Monte’s vegetable, fruit, tomato, and broth and stock segments.

Under Del Monte Foods’ agreement with Fresh Del Monte Produce, the buyer would acquire the company’s vegetable, tomato and refrigerated fruit business assets, including the Del Monte refrigerated fruit brand, Joyba beverage brand, Del Monte and S&W packaged vegetable brands, and three packaged tomato brands, along with global ownership of the Del Monte brand and related intellectual property. Fresh Del Monte said in its own announcement that the proposed transaction carries a purchase price of $285 million plus the assumption of certain liabilities.

Fresh Del Monte also outlined plans to acquire selected production and distribution facilities in Texas, Illinois, Wisconsin and Washington; two facilities in Mexico; and one operation in Venezuela, as well as key customer and supplier contracts and inventory intended to support uninterrupted service.

Fresh Del Monte noted that the deal would reunify the Del Monte brand under a single owner for the first time in nearly four decades, while aligning fresh and shelf-stable products under a single integrated strategy. Fresh Del Monte plans to manage the acquired brands through a dedicated business unit and does not anticipate immediate changes to products on shelf.

In a separate transaction, B&G Foods has agreed to purchase all assets in Del Monte Foods’ broth and stock business segment, including the College Inn and Kitchen Basics brands.

Finally, in a third transaction, Pacific Coast Producers will acquire the shelf-stable fruit business assets, excluding production facilities. Its agreement includes rights and licenses to use the Del Monte and S&W brands for shelf-stable packaged ambient fruit and ambient fruit sauces in the United States, including Puerto Rico, and Mexico. Under that structure, Del Monte-branded ambient fruit products in those markets would continue under a specialist processor that already works closely with brand owners.