French processed vegetable producer Bonduelle agrees with Conagra Brands Inc., Chicago, to acquire Conagra's Del Monte processed fruit and vegetable business in Canada.
The deal includes the right to use the Del Monte brand on different segments of processed fruits and vegetables and stocks of products marketed by Conagra for a total value of $43 million Canadian. The acquired business excludes all industrial and personnel assets because copackers as Bonduelle’s existing production capabilities will be used, it said in a statement. The agreement is expected to be completed by the end of May.
Bonduelle owns five brands of canned, frozen and fresh vegetables known in 100 countries around the world. Last year, it purchased Ready Pac Foods, the California-based producer of salads and fresh-cut produce to broaden its reach in the U.S.
Conagra’s Del Monte business in Canada, with revenues of approximately $60 million (Canadian), will complement Bonduelle Americas Long Life business unit’s canned and frozen vegetable business, which is largely conducted under retail store brands. This highlights the group’s desired development in brand activities and expansion beyond vegetables to vegetable products.
“We continue to reshape our portfolio and focus resources in areas that best support our business strategy and drive value creation for shareholders,” said Sean Connolly, president and CEO of Conagra Brands. “Del Monte is a strong brand in Canada with quality products, and we believe the Del Monte processed fruit and vegetable business will continue to thrive under Bonduelle’s ownership.”