Del Monte Foods sells consumer products business

SAN FRANCISCO, California, USA - Del Monte Foods has agreed to sell its Consumer Products business to Del Monte Pacific Limited for $1.675 billion. The decision will allow the company to focus on the $20 billion pet food and snack market. On closing, Del Monte Foods will change its name to reflect its focus on the pet products market.

Del Monte Pacific Limited owns the Del Monte^? brand in the Philippines and is the exclusive licensee on the Indian Sub-Continent for processed products, and is the owner of the S&W^? brand outside of the Americas for both processed products and fresh produce. The company is publicly traded in Singapore and the Philippines and has been a long-term supplier of processed pineapple to Del Monte Foods.

“Over the last two years, we have made significant investments – operationally, strategically and organisationally – to build the Consumer Products and Pet Products segments into businesses capable of capturing the significant opportunity available to each,” said Dave West, CEO of Del Monte Foods. “We believe DMPL is the right company to build on the Consumer Products segment’s recent success and achieve its next phase of growth, and we look forward to focusing on expanding our Pet Products business, which operates in one of the most attractive categories across the U.S. consumer packaged goods industry.”

Del Monte Foods has agreed to sell the Consumer Products business in order to focus its resources and efforts on capturing continued growth opportunities in its Pet Products business, which participates in an expanding $20 billion pet category, through greater emphasis on pet snacks and the pet specialty channel. This agreement comes after a strategic review that determined a sale of the Consumer Products business provided the best opportunities for the growth and stewardship of the company’s two differentiated business portfolios.

Del Monte Pacific Limited  is acquiring Del Monte Foods’ leading consumer packaged goods brands, which generate $1.8 billion of annual sales, as well as an established business model with talented and dedicated employees. Del Monte Foods’ Consumer Products brands hold leading positions in numerous packaged goods categories, including #1 branded market share positions in major fruit and vegetable categories and #2 positions in tomato and broth categories. Del Monte Foods Consumer Products brands’ leading branded market position in the fruit and vegetable segments immediately provides DMPL with significant scale and reach.

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