Del Monte Foods announced Thursday, Oct. 10 that it has reached an agreement to sell its consumer products business to Del Monte Pacific Limited (DMPL) for $1.675 billion. Given the distinct operations and markets of Del Monte Foods’ two segments, pet products and consumer products, a sale of the consumer products segment to DMPL will ensure that both business units are best positioned for growth in their respective markets.
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 Foods’ Pet Products brands already have stong market share positions across pet food and pet snack categories. The announced sale will allow Del Monte Foods to execute and place greater emphasis on its long-term strategy to strengthen the pet food and pet snack brand portfolio.
The transaction is expected to close by early calendar year 2014.
Morgan Stanley & Co LLC and Centerview Partners are acting as financial advisors and Simpson Thacher & Bartlett LLP is acting as legal advisor to Del Monte Foods.
For more information on Del Monte Foods, visit the company’s website at www.delmontefoods.com.