Del Monte Pacific Limited Completes Purchase of Del Monte Foods’ Consumer Products Business
Del Monte Pacific Limited (“DMPL”) (Bloomberg: DELM SP, DMPL PM) today announced that it has closed, through a subsidiary, the purchase of Del Monte Foods’ (“DMF”) Consumer Products business for US$1.675 billion, after receiving associated regulatory approvals and shareholder consent and completing customary closing conditions.
Under the terms of the agreement, DMPL has purchased DMF’s Consumer Products brands, including food product brands Del Monte®, Contadina®, College Inn®, S&W® and certain assets, and assumes certain liabilities related to DMF’s consumer food business in the U.S. as well as equity interests in certain South American subsidiaries from DMF.
The acquisition expands DMPL’s consumer products portfolio with a profitable, branded consumer products business, and provides access to the U.S., one of the few markets where DMPL did not previously have a direct presence or brands. DMPL’s U.S. consumer foods business takes on the name Del Monte Foods, Inc. (DMFI), consistent with the purchase agreement.
The sale of its Consumer Products business allows the former Del Monte Foods to re-launch as a new company focused solely on the pet products market, where the company has strong market positions and leading brands including Meow Mix®, Kibbles 'n Bits®, Milk-Bone®, 9Lives®, Natural Balance®, Pup-Peroni®, Gravy Train®, Nature’s Recipe®, Canine Carry Outs®, Milo’s Kitchen® and other brand names.
Morgan Stanley & Co LLC and Centerview Partners acted as financial advisors and Simpson Thacher & Bartlett LLP acted as legal advisor to Del Monte Foods.
Perella Weinberg Partners LLC served as lead financial advisor, and Citibank as a financial advisor to DMPL, in connection with the transaction. Citibank and Morgan Stanley are providing committed financing to DMPL’s acquisition subsidiary, while two leading Philippine banks, BDO Capital and Investment Corp. and Bank of the Philippine Islands, are providing committed financing to DMPL to fund the transaction. Kramer Levin Naftalis & Frankel LLP is acting as legal advisor to DMPL.
About Del Monte Pacific Limited (www.delmontepacific.com)
Dual listed on the Mainboard of the Singapore Exchange and the Philippine Stock Exchange, Del Monte Pacific Limited (Bloomberg: DELM SP/ DMPL PM) is a group of companies that caters to today’s consumer needs for premium quality, healthy food and beverage products. It innovates, produces, markets and distributes its products worldwide.