Chicago, Illinois-headquartered Conagra Brands announced on February 20 that it has entered into a definitive agreement to sell its Del Monte processed fruit and vegetable business in Canada to the Villeneuve d’Ascq, France-headquartered Bonduelle Group. The sale is subject to customary closing conditions and is expected to be completed before the end of May 2018. The transaction is valued at CA $43 million, which is approximately US $34 million at the current exchange rate.
The acquisition by Bonduelle includes the right to use the Del Monte brand in different segments of processed fruits and vegetables and stocks of products marketed by Conagra. The deal excludes all industrial and personnel assets because co-packers and Bonduelle’s existing production capabilities will be used.
With revenues of approximately CA $60 million, Conagra’s Del Monte business in Canada will complement the Bonduelle Americas Long Life business unit’s canned and frozen vegetable business, which is largely engaged in packing private label products for retailers. This highlights the group’s desired development in brand activities and expansion beyond vegetables to value-added vegetable products.
Commenting on the pending sale, Conagra CEO Sean Connolly said: “We continue to reshape our portfolio and focus resources in areas that best support our business strategy and drive value creation for shareholders. Del Monte is a strong brand in Canada with quality products, and we believe the Del Monte processed fruit and vegetable business will continue to thrive under Bonduelle’s ownership.”