In a significant industry development, Fresh Del Monte Produce is set to acquire the majority of California-based Del Monte Foods’ assets for a total of $285 million under a court-supervised bankruptcy agreement.
Del Monte Foods initiated Chapter 11 bankruptcy proceedings in July as the company looked for a viable buyer. This situation led to Fresh Del Monte’s strategic acquisition, which promises to reshape the landscape of the fresh and packaged food industry.
Under the terms of the acquisition, Fresh Del Monte will gain ownership of Del Monte Foods’ vegetable, tomato, and refrigerated fruit divisions, pending court approval at a hearing scheduled for January 28.
In a parallel process, B&G Foods is acquiring Del Monte Foods’ broth and stock operations, which include well-known brands like College Inn and Kitchen Basics. Additionally, Pacific Coast Producers is set to acquire the assets of Del Monte Foods’ shelf-stable fruit business.
This acquisition not only includes the Del Monte and S&W brands of packaged vegetables but also the Del Monte, Contadina, and Take Root Organics lines of packaged tomato products. It encompasses the Del Monte brand in refrigerated fruit as well as the Joyba ready-to-drink beverage brand.
Moreover, Fresh Del Monte will acquire multiple production and processing facilities. Specifically, the company will take ownership of sites located in Texas, Illinois, Wisconsin, and Washington, along with two plants in Mexico and one in Venezuela, as detailed in the official statement.
This deal marks a significant milestone, as it brings the Del Monte brand “under a single owner for the first time in nearly four decades,” according to Fresh Del Monte representatives.
Fresh Del Monte emphasized that it will secure global ownership of the Del Monte brand, subject to “licensing arrangements across different regions and categories.” This acquisition includes all US rights to the Del Monte, S&W, Contadina, and Joyba trademarks, along with “certain operating assets and employees” located in the US, Mexico, and Venezuela.
It’s important to note that the transaction does not cover the College Inn and Kitchen Basics brands, which will be acquired by B&G Foods. Furthermore, the deal excludes canned fruit and other ambient packaged fruit products under the Del Monte and S&W brands in the US, Puerto Rico, and Mexico, along with associated assets in these regions, according to Fresh Del Monte statements.
Del Monte Foods has been under the ownership of Singapore and Philippines-listed Del Monte Pacific since 2014.
Fresh Del Monte President Mohammad Abbas confirmed to Just Food that Del Monte Pacific will retain its role as the manufacturer and distributor of the Del Monte brand within the Philippines.
Abbas added that Del Monte Pacific will continue to function as a separate, independent entity. This arrangement ensures that the legacy of the Del Monte brand remains intact while also allowing for future growth and innovation.
In a statement regarding the acquisition, Mohammad Abu-Ghazaleh, the Chairman and CEO of Fresh Del Monte, remarked, “By uniting fresh and shelf-stable food under one strategy, we are honoring the brand’s legacy while supporting it for continued relevance and growth. This allows us to show up more consistently for consumers and to build a stronger, more flexible platform focused on efficiency, innovation, and long-term value creation.”
Del Monte Foods also released a statement confirming the various deals being finalized, which includes a third transaction with Pacific Coast Producers. This cooperative will acquire Del Monte Foods’ shelf-stable fruit business assets, excluding production facilities. The acquisition includes the rights and licenses to utilize the Del Monte and S&W brands for shelf-stable fruit products in the US, Puerto Rico, and Mexico.
Commenting on the entire series of transactions, Del Monte Foods’ CEO Greg Longstreet stated, “This outcome represents a successful result in our sale process and demonstrates the enduring value of Del Monte Foods’ brands and operations. These transactions will create an opportunity for our beloved brands and businesses to thrive under the ownership of three of the leading companies in the food industry.”
