MANILA - Del Monte Pacific Limited on Thursday said its US subsidiary has acquired the maker of ready-to-use stock and broth products Kitchen Basics from McCormick & Company for $99 million.
Its US subsidiary Del Monte Food Inc's acquisition deal took effect on Aug. 3, the company said in a disclosure to the stock exchange.
Kitchen Basics will join the company's portfolio as part of its plans to expand its retail presence in the category, the statement said.
The shift in consumer preference towards home meal preparation and health and wellness has driven the demand for broth and stocks in the last 2 years, Del Monte Foods Chief Marketing Officer Bibie Wu said.
"We're excited to bring Kitchen Basics into the Del Monte family of brands to help create healthful meals they love," Wu said.
Del Monte said assets acquired are intellectual property and inventory but no property, plant or other equipment were included.
"As we plan for the next decade of growth, we're committed to strengthening our branded product portfolio to meet consumers' changing needs," Del Monte Foods president and CEO Greg Longstreeet said.
"The acquisition of Kitchen Basics will enable us to leverage synergies across our business to scale our broth and stock portfolio," he added.
Kitchen Basics products are distributed in the United States.