Del Monte Foods sell vegetable business to McCall Farms
Del Monte Foods Inc. (DMFI) has entered into agreement to sell its Sager Creek vegetable business to McCall Farms, Inc., a family-owned business that manufactures brands such as Bruce’s Yams, Margaret Holmes, and Glory Foods. The total consideration for the assets sold will be USD55 million.
The Sager Creek Business produces specialty vegetables for the food service and retail markets, and manufactures several brands, including Veg-all, Freshlike, Popeye, Princella, Trappey’s, and Allens.
DMFI is the US subsidiary of Philippine Stock Exchange (PSE) -listed Del Monte Pacific Limited (DMPL).
A disclosure in the PSE showed that as a result of this sale, one production facility in Siloam Springs, Arkansas, will immediately cease operations.
“DMFI will continue to be the point of service for all retail and food service customers of Sager Creek through early 2018, and will work closely with McCall Farms to support seamless transition to McCall’s organization,” DMPL noted.
David Meyers, chief operating officer of DMFI, said this divesture allows the company to focus its energy and resources on strenghtening its core business and explorating new products.