ConAgra Foods Agrees to Acquire Del Monte Canada from an Affiliate of Sun Capital Partners
January 17 2012 - 2:05PM
Business Wire
ConAgra Foods, Inc., (NYSE: CAG) announced today that it has
agreed to acquire Toronto-based Del Monte Canada Inc., a leading
provider and marketer of packaged fruits, fruit snacks and
vegetables in Canada, from an affiliate of Sun Capital Partners.
The agreement includes the acquisition of all Del Monte branded
packaged fruit, fruit snacks and vegetable products in Canada, as
well as Aylmer tomato products. Del Monte fresh produce, juices,
and Aylmer soups will remain under separate ownership.
The agreement also includes a manufacturing facility in Dresden,
Ontario, and headquarters offices in Toronto, Ontario. Del Monte
Canada has 190 employees and fiscal 2011 revenue of approximately
$150 million. The transaction is subject to the satisfaction of
closing conditions as well as applicable regulatory reviews.
Financial terms were not disclosed.
ConAgra Foods’ agreement to acquire Del Monte Canada is based on
its strategies to grow core businesses, expand into strategic
adjacencies and build its international presence. The company
recently acquired National Pretzel Company, maker of a variety of
private-label pretzel products and also announced last November
that it increased its ownership share of Agro Tech Foods Ltd. in
India.
“The acquisition of Del Monte Canada supports our strategic
growth plan,” said Gary Rodkin, chief executive officer of ConAgra
Foods. “It will grow our position in North American tomato
products, expand our vegetable product line and add packaged fruit
and fruit snacks to our portfolio.”
ConAgra Foods Canada Inc. currently has over 300 employees at
three locations, including its Canadian headquarters in
Mississauga, Ontario. Popular ConAgra Foods consumer brands include
Healthy Choice, Orville Redenbacher's, Hunt's, Snack Pack, Chef
Boyardee, PAM, POGO, VH, and many others.
“We are excited to add Del Monte Canada’s operation to our
business and build our presence in Canada,” said Tom Gunter,
president of ConAgra Foods Canada Inc. “Del Monte and Aylmer are
leading brands with strong legacies, making this acquisition an
excellent strategic fit.”
About ConAgra FoodsConAgra Foods, Inc., (NYSE: CAG), is
one of North America's leading food companies, with brands in 97
percent of America’s households. Consumers find Banquet, Chef
Boyardee, Egg Beaters, Hebrew National, Hunt’s, Marie Callender’s,
Orville Redenbacher’s, PAM, Peter Pan, Reddi-wip, Slim Jim, Snack
Pack and many other ConAgra Foods brands in grocery, convenience,
mass merchandise and club stores. ConAgra Foods also has a strong
business-to-business presence, supplying frozen potato and sweet
potato products as well as other vegetable, spice and grain
products to a variety of well-known restaurants, foodservice
operators and commercial customers. For more information, please
visit us at http://www.conagrafoods.com.
About Sun Capital Partners, Inc.Sun Capital Partners,
Inc. is a leading private investment firm focused on leveraged
buyouts, equity, debt, and other investments in companies that can
benefit from its in–house operating professionals and experience.
Sun Capital affiliates have invested in more than 285 companies
worldwide with combined sales in excess of $45 billion since Sun
Capital’s inception in 1995. Sun Capital has offices in Boca Raton,
Los Angeles, and New York, as well as affiliates in London, Paris,
Frankfurt, Luxembourg, Shanghai and Shenzhen. For more information,
please visit www.SunCapPart.com
Note on Forward-looking StatementsThis release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are
based on management’s current views and assumptions of future
events and financial performance and are subject to uncertainty and
changes in circumstances. We undertake no responsibility for
updating these statements. Readers of this release should
understand that these statements are not guarantees of performance
or results. Many factors could affect our actual financial results
and cause them to vary materially from the expectations contained
in the forward-looking statements, including those set forth in
this release. These factors include, among other things:
availability and prices of raw materials, including any negative
effects caused by inflation; the effectiveness of our product
pricing, including any pricing actions and promotional changes;
future economic circumstances; industry conditions; our ability to
execute our operating and restructuring plans; the success of our
innovation, marketing, and cost- saving initiatives; the
competitive environment and related market conditions; operating
efficiencies; the ultimate impact of any product recalls; our
success in efficiently and effectively integrating acquisitions;
access to capital; actions of governments and regulatory factors
affecting our businesses, including the Patient Protection and
Affordable Care Act; the amount and timing of repurchases of our
common stock, if any; and other risks described in our reports
filed with the Securities and Exchange Commission. We caution
readers not to place undue reliance on any forward-looking
statements included in this release, which speak only as of the
date of this release.
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