Fresh Del Monte Set to Acquire Del Monte Foods Assets for $285 Million

Fresh Del Monte Produce Inc. (NYSE: FDP) has emerged as the successful bidder for select assets of California-based Del Monte Foods Corporation II Inc. in a transaction valued at $285 million, coupled with the assumption of certain liabilities. This acquisition is being conducted through a court-supervised sale under Section 363 of the U.S. Bankruptcy Code.

Transaction Details and Timeline

The deal is pending court approval and will need to clear regulatory hurdles, including the Hart-Scott-Rodino antitrust clearance. The sale hearing is scheduled for January 28, 2025, with a final closing anticipated by the end of the first quarter of 2026.

A Historic Unification of the Del Monte Brand

This acquisition marks a significant moment for the Del Monte brand, bringing it under a single owner for the first time in nearly 40 years. This move is seen as a step toward integrating fresh and shelf-stable foods into a unified strategy.

“Bringing the Del Monte brand back together reflects a long-held conviction of mine,” stated Mohammad Abu-Ghazaleh, Chairman and CEO of Fresh Del Monte. “By uniting fresh and shelf-stable food under one strategy, we are honoring the brand’s legacy and supporting it for continued relevance and growth.”

Assets Included in the Acquisition

As part of this transaction, Fresh Del Monte will acquire various businesses and assets related to prepared and packaged foods, including:

• Vegetable, tomato, and refrigerated fruit businesses
• Brands such as Del Monte, S&W packaged vegetables, Contadina, Take Root Organics, Del Monte refrigerated fruit, and Joyba beverages

The acquisition includes operational assets from selected U.S. facilities located in Texas, Illinois, Wisconsin, and Washington, as well as two facilities in Mexico and one operation in Venezuela. Key customer and supplier contracts will also be transferred to ensure uninterrupted service.

Global Ownership and Exclusions

Fresh Del Monte will obtain global ownership of the Del Monte brand, including U.S. rights to the trademarks of Del Monte, S&W, Contadina, and Joyba. However, certain products are excluded from the deal, specifically canned fruit, ambient packaged fruit, and fruit sauce products within the U.S., Puerto Rico, and Mexico markets, along with associated physical assets.

Future Plans and Financing

Following the closing of the transaction, Fresh Del Monte plans to manage the acquired brands through a dedicated business unit, ensuring continuity for all stakeholders, including retailers and consumers. No immediate product changes are expected to occur.

Fresh Del Monte intends to finance the acquisition through a mix of cash on hand and availability under its revolving credit facility. Rabobank has served as the exclusive financial advisor to Fresh Del Monte, with legal advice provided by Greenberg Traurig and Dickinson Wright.

About Fresh Del Monte Produce

Headquartered in Coral Gables, Florida, Fresh Del Monte Produce is a leading vertically integrated producer, marketer, and distributor of fresh and fresh-cut fruit and vegetables, with operations spanning over 80 countries. The company markets its products worldwide under the Del Monte brand under a licensing agreement with Del Monte Foods, Inc. Notably, Fresh Del Monte is not affiliated with other Del Monte entities globally, including Del Monte Foods Inc., the U.S. subsidiary of Del Monte Pacific Limited, and other regional companies.

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