Del Monte Canada has agreed to be purchased by ConAgra Foods

Posted on: 23 January 2012

Sun Capital Partners, Inc. ("Sun Capital,") a leading private investment firm specializing in leveraged buyouts and investments in market–leading companies, today announced that its affiliated portfolio company Del Monte Canada, the market leader in packaged fruit and tomatoes in Canada, has agreed to be purchased by ConAgra Foods, one of North America’s leading food companies.

 

 

The agreement with ConAgra Foods includes the sale of all Del Monte–branded packaged fruit and vegetable products, as well as Aylmer tomato products, a manufacturing facility in Dresden, Ontario, and the Company’s headquarters offices in Canada.

 

 

"Del Monte Canada is a classic example of a successful carve–out of a non–core business, and the execution of a focused plan to develop the business to realize its potential," said Marc Leder, Co–CEO at Sun Capital Partners. "We took an unprofitable business and reinvented it by tapping into the underlying brand value and keeping a focus on innovation and the consumer’s needs. Today, Del Monte Canada is a profitable business well positioned for future growth. ConAgra Foods is an ideal owner for this business given their expertise in the tomato category and their presence in Canada."

 

 

The transaction marks the second time that Sun Capital has sold successfully an affiliate to ConAgra Foods. In April 2010, ConAgra Foods purchased Elan Nutrition, a contract developer and manufacturer of nutritional bars serving the health and wellness, meal replacement, sport nutrition, energy bar and nutraceuticals markets.

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