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ConAgra set to acquire Del Monte Canada
January 17th, 2012
OMAHA, Neb. – ConAgra Foods Inc. has agreed to buy Del Monte Canada Inc. from an affiliate of private equity firm Sun Capital Partners.
The packaged food giant said Tuesday that under the deal, it will acquire all Del Monte-branded packaged fruit, fruit snacks and vegetable products in Canada, as well as Aylmer tomato products. Del Monte fresh produce, juices, and Aylmer soups will remain under separate ownership.
The agreement, financial terms of which weren't disclosed, also includes a manufacturing plant in Dresden, Ontario, and Del Monte Canada's headquarters in Toronto. Del Monte Canada has 190 employees and posted fiscal 2011 revenue of about $150 million.
Plans call for the Del Monte Canada assets to become part of ConAgra Foods Canada Inc.
"The acquisition of Del Monte Canada supports our strategic growth plan," stated Gary Rodkin, chief executive officer of ConAgra Foods. "It will grow our position in North American tomato products, expand our vegetable product line, and add packaged fruit and fruit snacks to our portfolio."
ConAgra Foods Canada has over 300 employees at three locations, including its Canadian headquarters in Mississauga, Ontario. Popular ConAgra Foods consumer brands include Healthy Choice, Orville Redenbacher's, Hunt's, Snack Pack, Chef Boyardee, PAM, POGO and VH.
"We are excited to add Del Monte Canada's operation to our business and build our presence in Canada," commented Tom Gunter, president of ConAgra Foods Canada. "Del Monte and Aylmer are leading brands with strong legacies, making this acquisition an excellent strategic fit."