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Del Monte Pacific to acquire Del Monte Foods for $1.68bn

Published 14 October 2013

Philippines-based Del Monte Pacific (DMPL) has agreed to acquire the US consumer food business of privately-held Del Monte Foods for $1.68bn, in a move to expand its footprint in the US and Canada.

Del Monte Foods is the producer, distributor and marketer of premium quality, branded pet products and food products.The chain operates Pet Products and Consumer Products segments.

According to the company, the deal will enable it to focus its resources and efforts on capturing continued growth opportunities in its pet products business, which participates in an expanding $20bn pet category, through greater emphasis on pet snacks and the pet specialty channel.

Del Monte Foods CEO Dave West said, "We believe DMPL is the right company to build on the Consumer Products segment's recent success and achieve its next phase of growth, and we look forward to focusing on expanding our Pet Products business, which operates in one of the most attractive categories across the U.S. consumer packaged goods industry."

Del Monte Pacific is a food company that markets canned goods, fresh produce, and packaged foods in China, India, and the Philippines.

It owns the Del Monte brand in the Philippines and is the exclusive licensee on the Indian subcontinent for processed products, and is the owner of the S&W brand outside of the Americas for both processed products and fresh produce.

DMPL is expected to fund the deal through a combination of cash in hand, debt and issuance of equity.

The deal is slated to close in early 2014, subject to regulatory approvals and customary closing conditions, including shareholder approvals.