ConAgra closes Del Monte Canada deal

US-based packaged foods company ConAgra Foods has completed the acquisition of Del Monte Canada, a Toronto-based provider of packaged fruits, fruit snacks and vegetables, for an undisclosed amount.

The acquisition includes all Del Monte branded packaged fruit, fruit snacks and vegetable and Aylmer tomato products in Canada, its headquarters in Toronto and a manufacturing facility in Dresden, Ontario.

Del Monte’s other product lines, such as fresh produce, juices and Aylmer soups, are not part of the deal.

ConAgra announced its agreement to acquire Del Monte Canada from an affiliate of private investment firm Sun Capital Partners in January this year.

This latest acquisition is seen as a part of the company’s strategy to grow its core businesses to widen its international presence and expand into strategic adjacencies.

ConAgra Foods CEO Gary Rodkin said the acquisition enables the company to grow its position in North American tomato products, expand its vegetable product line and add packaged fruit and fruit snacks to its portfolio.

ConAgra Foods operates three locations in Canada, including its headquarters in Ontario, and owns several consumer brands such as Healthy Choice, Orville Redenbacher’s, Hunt’s, Snack Pack, Chef Boyardee, PAM, POGO and VHs.

The company has been looking for acquisitions in the private label category after it failed to buy Ralcorp, a private-label manufacturer of ready-to-eat food and snacks.

Last December, ConAgra acquired National Pretzel from Brookstone for about $300m, and in November, it paid $10m to buy a majority stake in India-based Agro Tech Foods.

Sun Capital affiliate acquired Del Monte Canada from Kraft Foods in 2006, following which it focused mainly on product innovations, and higher margin products to turn around the underperforming business – in 2011, the fruit snacks provider reported revenue of $150m.

 

Image: ConAgra acquired all Del Monte branded packaged fruit, fruit snacks and vegetable and Aylmer tomato products Canada, the headquarters in Toronto and a manufacturing facility in Dresden, Ontario. Photo: Tyrone.