MANILA, Philippines – Del Monte Pacific Ltd (DMPL) has completed its purchase of the consumer food business from US-based Del Monte Corporation, the firm said Wednesday.
DMPL bought the food business from Del Monte Corporation for $1.675 billion, subject to working capital adjustments.
Nils Lommerin, chief executive of the food business renamed as Del Monte Foods, Inc. (DMFI), said the deal allows the brand to capture “significant growth opportunities” as Del Monte Foods moves forward.
The acquisition also opens up access to international markets for DMFI’s products through DMPL’s presence in the Philippines.
DMPL, which owns the Del Monte brand in the Philippines, operates one of the largest pineapple plantations in the world.
"At present, our market share of the canned pineapple market in the United States is less than 10 percent and we will focus on increasing our penetration in this segment by leveraging on the advantages of vertical integration and DMPL's success in the Philippines and elsewhere," said Lommerin.
The deal also allows for new product categories to be developed in the US and will give DMPL additional net sales of more than $1.8 billion.
"We are very excited about this historic transaction which quadruples DMPL’s sales from $500 million to more than $2 billion, and fortifies DMPL`s vision of becoming a global branded food and beverage company. This is a game-changer for the Company and we will provide full support to DMFI to ensure we execute against our plans for future growth," said DMPL chairman Rolando Gapud. -- With Reuters