Del Monte Foods Corp. Announces Sale of Core Brand Assets
Del Monte Foods Corp., based in Walnut Creek, California, has finalized deals to sell its main brand assets six months after filing for Chapter 11 bankruptcy protection. The company has reached agreements with Fresh Del Monte Produce Inc., B&G Foods Inc., and Pacific Coast Producers for the sale of various business units.
Acquisition Details
Under the court-supervised auction process, Fresh Del Monte Produce will acquire Del Monte’s vegetable, tomato, and refrigerated fruit businesses. This includes popular brands such as Del Monte, S&W, Contadina, and Take Root Organics. In addition, Fresh Del Monte Produce will gain global ownership of the Del Monte brand and related intellectual property.
B&G Foods is set to purchase Del Monte’s broth and stock businesses, encompassing brands like College Inn and Kitchen Basics. Pacific Coast Producers, known for canning fruit and tomatoes for private labels, will acquire Del Monte’s shelf-stable fruit businesses.
Financial Terms
The asset purchase agreements involve significant sums, with Fresh Del Monte Produce paying $285 million, B&G Foods acquiring assets for $110 million in cash, and the terms of the transaction with Pacific Coast Producers remaining undisclosed.
Company Statements
Greg Longstreet, CEO of Del Monte Foods, expressed satisfaction with the outcome of the sale process, emphasizing the enduring value of the company’s brands. He highlighted the potential for growth and success under the ownership of industry leaders.
Del Monte Foods initiated Chapter 11 bankruptcy proceedings in July, securing financing to facilitate the sale of assets. The pending sales are subject to court approval and are expected to be finalized by the end of the first quarter of 2026.
Future Plans
Fresh Del Monte Produce plans to consolidate the Del Monte brand under its ownership, aiming to enhance efficiency and innovation. B&G Foods anticipates significant sales growth from the acquisition of College Inn and Kitchen Basics brands.
The acquisitions mark a strategic move for all parties involved, positioning the brands for continued success and relevance in the market.