Del Monte Foods has reached an agreement to sell its Consumer Products business to Del Monte Pacific Limited for $1.675 billion to focus on its Pet Products division and ensure both segments are positioned for growth in their markets. Upon closing on the deal, Del Monte Foods will change its name to better reflect its new focus on the pet market.
Del Monte will sell its Consumer Products business in order to focus its resources and efforts on continued growth opportunities in its Pet Products business through greater emphasis on pet snacks and the pet specialty channel. This agreement comes after a strategic review that determined a sale of the Consumer Products business provided the best opportunities for the growth and stewardship of the company's two differentiated business portfolios. The company anticipates that the continued heightened importance of pets as a part of the family and higher consumer spending on premium pet products will drive market expansion, building on Del Monte's recent acquisition of specialty petfood brand Natural Balance.
"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," said Dave West, CEO of Del Monte Foods. "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."
The transaction is expected to close by early calendar year 2014.
Petfood companies who promote their support of causes in their marketing campaigns are staying innovative in these uncertain times
Learn about more companies and how they are lending a helping paw and claw to their own cause campaigns
Aunt Jeni's Home Made promotes the health and longevity of pets with their natural and raw lines of products
Committees discussed key proposals such as a possible shift in the oversight of animal feeds
The mid-year meeting addressed several regulatory matters affecting petfoods
It gives more direct control to CVM in establishing and maintaining ingredient definitions
There's a disconnect between consumers' confidence in petfoods and their knowledge of what makes the foods nutritious
Now is the time for packagers, producers, marketers and manufacturers to capitalize on the traveling with pets trend
While petfood shoppers continue to show strong brand loyalty, pet products have not been immune to the store brand swing
--- Thank you for your patience ----
If you have any issues logging in or any other need feel free to contact us.