Fresh Del Monte Produce completes Mann Packing acquisition

Global producer and distributor of fresh-cut fruit and vegetables Fresh Del Monte Produce has completed its previously announced acquisition of the US-based vegetable products processor and supplier Mann Packing.

Last month, the two companies signed a definitive agreement, where Fresh Del Monte Produce has agreed to acquire Mann Packing through its North American subsidiary for an aggregate purchase price of $361m.

At the time of signing the agreement, Fresh Del Monte chairman and chief executive officer Mohammad Abu-Ghazaleh said: “We are extremely pleased about our acquisition of Mann Packing, a leader in the fresh and value-added vegetable category.

“Mann Packing’s strength in the vegetable category, one of the fastest growing fresh food segments, will allow us to diversify our business, leverage our distribution network and infrastructure, and increase our market reach.

“In addition, this transaction will provide us with synergies, enhancing our ability to better serve our combined customers and address consumers’ needs for healthier products.

“This acquisition is a significant step toward our goal to be the world’s leading supplier of healthful, wholesome, and nutritious fresh and prepared food and beverages for consumers.”

The acquisition is said to have been funded through available cash-on-hand, as well as through borrowings under the company’s existing senior unsecured revolving credit facility.

Based in Salinas, California, Mann Packing grows and supplies a wide range of fresh and value-added vegetable products in North America.

Mann Packing also offers washed and ready-to-eat fresh-cut vegetables, snack packs, and party trays for the food service and retail markets.

In another development, Fresh Del Monte Produce and its certain subsidiaries have used the option to increase the revolving borrowing capacity of the credit facility from $800m to $1.1bn.