Del Monte Pacific Ltd. (DMPL) has fully settled its acquisition of the consumer food business of Del Monte Corp. for $1.675 billion, a transaction seen to quadruple DMPL’s annual sales from $500 million to about $2 billion.
DMPL is listed at the Singapore Exchange and Philippine Stock Exchange.
In a disclosure in both exchanges, DMPL said on Wednesday that it has completed its purchase of the consumer food business of Del Monte Corp. for $1.675 billion, which will be renamed Del Monte Foods Inc. (DMFI).
”We are very excited about this historic transaction which quadruples DMPL’s sales from $500 million to more than $2 billion. This is a game-changer for the company and we will provide full support to DMFI to ensure we execute against our plans for future growth,” said Rolando Gapud, chairman of DMPL.
The acquisition, according to Gapud, will offer DMPL greater access to a well-established and profitable branded consumer food business in the world’s biggest market.
”Del Monte Foods, with a 26-percent market share in the canned fruit market in the United States will provide Del Monte Pacific with a solid growth platform and supplement our achievements in the expanding markets of Asia,” he said.
”It will also provide longer term opportunities in the emerging markets of South America,” Gapud added.
The acquisition was financed partly by bridging loans for the closing. The final financing structure provides for a total equity investment of $705 million into DMFI, of which $605 million is in the form of fresh capital and the balance from loans.
MPL owns the Del Monte brand in the Philippines where it is the market leader across major food and beverage categories. The brand also has a growing presence in India through FieldFresh Foods, DMPL’s joint venture with Bharti Enterprises, one of India’s largest conglomerates.