Fresh Del Monte Produce, Coral Gables, Fla., announced on Feb. 5 that its North America subsidiary, Del Monte Fresh Produce N.A., Inc., has agreed to purchase vegetable grower/processor/supplier Mann Packing Co. Mann deals with a wide variety of fresh and value-added vegetable products in North America, including washed and ready-to-eat, fresh-cut vegetables, snack packs and party trays and lettuce products for foodservice and retail markets. Mann Packing’s annual sales were approximately $535 million in 2017.
Del Monte will make the acquisition for an aggregate consideration of approximately $361 million in cash, financed with cash on hand and the company’s existing credit facility. The company expects the purchase to be accretive to earnings in the first year. The transaction is subject to regulatory approvals and other conditions customary for such transactions, and should close during the first quarter of 2018.
"We are extremely pleased about our acquisition of Mann Packing, a leader in the fresh and value-added vegetable category," said Mohammad Abu-Ghazaleh, chairman and CEO of Fresh Del Monte.
"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," Abu-Ghazaleh said. "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.”