In May, Del Monte and Natural Balance signed a merger agreement. Del Monte has now reached an agreement to sell its consumer products business to Del Monte Pacific Limited for $1.675 billion.
Given the distinct operations and markets of Del Monte Foods’ two segments, pet products and consumer products, a sale of the consumer segment to Del Monte Pacific Limited will ensure that both business unites are best positioned for growth in their respective markets.
“Over the last two years, we have made significant investments – operationally, strategically and organizationally – to build the Consumer Products and Pet Products segments into businesses capable of capturing the significant opportunity available to each,” Dave West, CEO of Del Monte Foods, said. “We believe DMPL is the right company to build on the Consumer Products segment’s recent success and achieve its next phase of growth, and we look forward to focusing on expanding our Pet Products business, which operates in one of the most attractive categories across the U.S. consumer packaged goods industry.”