Manila, Philippines (4E) – Del Monte Pacific Ltd. said it will acquire the U.S. foodmaker Del Monte Foods Co.’s consumer food business for $1.68bn to increase its presence in the world’s largest economy.
The acquisition would include Del Monte Foods’ U.S. vegetable, canned fruit and broth business under several American brands that include Del Monte, S&W, Contadina and College Inn, according to a disclosure on Friday to the Philippine Stock Exchange on Friday by the Campos family’s NutriAsia group-controlled Del Monte Pacific.
The Philippines-based Del Monte Pacific, which also operates pineapple plantations as well as supplies processed pineapple to the closely held Del Monte Foods, is expected to benefit from expanding in the U.S. processed food market, the company said.
The pineapple, fruit juices and tomato company looks into expanding in the U.S., where consumer spending advanced for a fourth straight month in August. The sale gives Del Monte Pacific access to U.S. customers like Wal-Mart Stores Inc.. The new brands generate sales of around $1.8bn annually, according to the statement.
Del Monte Pacific Chairman Rolando Gapud said that the U.S. was among the key markets where that the company has no direct presence nor has launched any of its brands, according to a statement Friday.