US$285mn deal marks “historic milestone” that brings the Del Monte brand under single ownership for the first time in nearly four decades
Fresh Del Monte Produce has announced that it has completed the acquisition of select assets of California-based Del Monte Foods Corporation and its affiliates for approximately US$285mn.
The transaction was approved by the US Bankruptcy Court for the District of New Jersey following a court-supervised sale under Section 363 of the US Bankruptcy Code and will be funded through a combination of cash on hand and availability under Fresh Del Monte’s revolving credit facility.
The group stated that the transaction marked a ”historic milestone” for both companies and the broader food industry, bringing the Del Monte brand under a single owner for the first time in nearly four decades.
”By aligning fresh and shelf-stable products under a coordinated global strategy, Fresh Del Monte is positioned to unlock the full potential of one of the world’s most recognised food brands and lead the next chapter of the iconic brand,” the company said.
Fresh Del Monte said that it expects the transaction to strengthen brand consistency and identity across categories, expand household penetration and consumer reach across more occasions and channels, and enhance operational efficiency, flexibility, and cost structure.
The move will also support sustainable long-term value creation, accelerate innovation across both fresh and packaged platforms, and introduce new growth avenues through brand extensions and global licensing opportunities, it suggested.
“Reuniting the Del Monte brand under one global leader is a truly significant moment for our company,” said Mohammad Abu-Ghazaleh, Fresh Del Monte’s chairman and CEO.
”Del Monte has been one of the most recognised names in food for more than 140 years.
“While the brand has operated across separate platforms for the past four decades, its heritage has always been rooted in bringing quality food to consumers around the world,” he continued.
”Bringing these businesses together allows us to move forward with a unified strategy that strengthens the brand across fresh and packaged categories while creating new opportunities for growth, innovation, and global reach.
”In many ways, this moment reflects the enduring trust and global recognition the Del Monte brand has earned over generations and marks the beginning of an exciting new chapter for the brand,” Abu-Ghazaleh added.
Acquisition details
Under the transaction, Fresh Del Monte will assume certain liabilities and acquire global ownership of the Del Monte brand, subject to existing licensing arrangements.
The Company will also acquire key prepared and packaged foods businesses, including the Del Monte and S&W packaged vegetable brands, Del Monte and Contadina packaged tomato brands, and the Del Monte packaged refrigerated fruit brand.
The acquisition includes a diversified manufacturing and operating footprint across North America and key international markets, including four select US facilities in Texas, Illinois, Wisconsin, and Washington; two manufacturing facilities in Mexico; one operation in Venezuela; material customer and supplier contracts, ensuring continuity of service; and associated inventory, operating assets, and employees.
Fresh Del Monte pointed out that assets Not Included in the transaction are canned fruit and other ambient packaged fruit and fruit sauce products for the US, Puerto Rico, and Mexico, the College Inn and Kitchen Basics broth and stock brands, and physical assets associated with those excluded businesses.
”Following the close of the transaction, Fresh Del Monte will house the newly acquired brands and businesses within a dedicated business unit to ensure stability and continuity for customers, retailers, suppliers, growers, and employees,” the group explained.
”The Company does not expect any immediate changes to products, packaging, or distribution.
”In the near term, Fresh Del Monte’s priority is maintaining seamless operations across the acquired businesses while taking a measured approach to integration and supporting the experienced teams who have built strong relationships with customers and partners,” it confirmed.
