Fresh Del Monte acquisition unites brand under single owner

Fresh Del Monte Produce Inc. has acquired select assets of California-based Del Monte Foods Corp. II Inc. and its affiliates for approximately $285 million.

The transaction was approved by the United States Bankruptcy Court for the District of New Jersey following a court-supervised sale and will be funded through a combination of cash on hand and availability under Fresh Del Monte’s revolving credit facility, according to a news release.

The transaction brings the Del Monte brand under a single owner for the first time in nearly four decades and aligns fresh and shelf-stable products under a coordinated global strategy, according to the release. 

The company said the acquisition will:

• Strengthen brand consistency and identity
• Support sustainable long-term value creation
• Accelerate innovation across both fresh and packaged platforms
• Enhance operational efficiency, flexibility and cost structure
• Introduce new growth avenues through brand extensions and global licensing opportunities
• Expand household penetration and consumer reach

“Reuniting the Del Monte brand under one global leader is a truly significant moment for our company. Del Monte has been one of the most recognized names in food for more than 140 years,” said Mohammad Abu-Ghazaleh, Fresh Del Monte chair and CEO. “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. 

“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.”

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 following brands:

• Del Monte and S&W packaged vegetable brands
• Del Monte and Contadina packaged tomato brands
• 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 U.S. facilities in Texas, Illinois, Wisconsin and Washington
• Two manufacturing facilities in Mexico
• One operation in Venezuela
• Material customer and supplier contracts
• Associated inventory, operating asset, and employees

Assets not included in the transaction include canned fruit and other ambient packaged fruit and fruit sauce products for the United States, Puerto Rico and Mexico; the College Inn and Kitchen Basics broth and stock brands; and physical assets associated with those businesses.