ingapore-based food and beverage firm, has closed the acquisition of Del Monte Foods' (DMF) Consumer Products business for $1.67bn.The acquired entity will now be renamed as Del Monte Foods (DMFI). The takeover includes Del Monte, S&W, Contadina and College Inn brands, which generated $1.8bn in sales and $164m in EBITDA in 2013.
DMFI CEO Nils Lommerin said, "Over the last two years, significant investments have been made into the 100-year-old iconic Del Monte® brand.
"This deal allows for complete focus on the strategic direction of the Del Monte® brand, backed by a visionary and strategic parent in Del Monte Pacific, and positions us to capture significant growth opportunities as Del Monte Foods moves forward."
The deal paves the way for DMFI to expand its international market presence through DMPL's presence in the Philippines, and footprint in the Asian markets, while introducing new products into the US market from Asia.
DMPL chairman Rolando Gapud said, "We are very excited about this historic transaction which quadruples DMPL's sales from US$500 million to more than US$2 billion, and fortifies DMPL's vision of becoming a global branded food and beverage company."
DMPL owns the Del Monte brand in the Philippines, and is the exclusive licensee for the distribution of processed products on the Indian sub-continent. It also owns the S&W brand outside the Americas for both processed products and fresh produce and operates one of the largest pineapple plantations in the world.
Currently, DMFI holds less than 10% share in the US canned pineapple market, and it plans to focus on increasing its penetration in the segment. In addition, it also has the potential to expand in the longer term across new markets and product categories in South America.
