Fresh Del Monte closes $285 million Del Monte Foods asset deal

Fresh Del Monte Produce Inc. completed its acquisition of select assets of Del Monte Foods Corporation II Inc. and its affiliates for about $285 million. The company said it expects to fund the transaction with a combination of its existing credit facility and cash on hand. 

The transaction brings global ownership of the Del Monte brand under a single owner for the first time in nearly four decades, the company noted, subject to existing licensing arrangements. Fresh Del Monte also said it will assume certain liabilities as part of the deal.

The company acquired the prepared and packaged foods businesses that include Del Monte and S&W packaged vegetable brands, Del Monte and Contadina packaged tomato brands, and the Del Monte packaged refrigerated fruit brand. It also included four U.S. facilities in Texas, Illinois, Wisconsin and Washington, along with two manufacturing facilities in Mexico and an operation in Venezuela.

The deal excludes canned fruit and other ambient packaged fruit and fruit sauce products for the United States, Puerto Rico and Mexico, as well as the College Inn and Kitchen Basics broth and stock brands and related physical assets.

At the same time, the broths and stock business of Del Monte Foods Corporation II Inc., including the College Inn and Kitchen Basics brands, was acquired by B&G Foods Inc. for $110 million in cash.

Following the close, Fresh Del Monte said it will place the acquired brands and businesses into a dedicated business unit and does not expect immediate changes to products, packaging or distribution.