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Bonduelle buys Del Monte rights in Canada from Conagra
Bonduelle announced on Tuesday that it has signed an agreement with the New York-listed Conagra Brands, to acquire its Del Monte processed fruit and vegetable business in Canada.
The company said the acquisition included the right to use the Del Monte brand on different segments of processed fruits and vegetables, and stocks of products marketed by Conagra, for a total value of CAD 43m.
It said the acquired business excluded all industrial and personnel assets, as co-packers and Bonduelle's existing production capabilities would be used.
The transaction will become final after suspensive conditions are lifted, before the end of May.
"Conagra's Del Monte business in Canada, with revenues of approximately CAD 60m, will complement Bonduelle Americas Long Life business unit's canned and frozen vegetable business, which is largely conducted under retailer's store brands," Bonduelle's board said in its statement.
"This highlights the group's desired development in brand activities and expansion beyond vegetables to vegetable products."