French processed vegetable company Bonduelle has signed an agreement with Conagra Brands to acquire its Del Monte processed fruit and vegetable business in Canada.
The transaction, which is valued at around CAD 43 million ($34.2 million), is expected to be completed by the end of May 2018.
Conagra’s Del Monte business in Canada, with revenues of approximately CAD 60 million ($47.7 milion), will complement Bonduelle’s Americas Long Life canned and frozen vegetable business, which is largely conducted under retailer’s store brands.
“This highlights the group’s desired development in brand activities and expansion beyond vegetables to vegetable products,” Bonduelle said in a statement.
The acquired business excludes all industrial and personnel assets because co-packers and Bonduelle’s existing production capabilities will be used.
Conagra Brands 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.”
© FoodBev Media Ltd 2022
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