CHICAGO — Bonduelle Group has agreed to acquire Conagra Brands, Inc.’s Del Monte processed fruit and vegetable business in Canada in a transaction valued at approximately C$43 million ($34 million). The deal is expected to be completed by the end of May.
“We continue to reshape our portfolio and focus resources in areas that best support our business strategy and drive value creation for shareholders,” said Sean Connolly, president and chief executive officer of Conagra Brands. “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.”
Based in France, Bonduelle owns five brands of canned, frozen and fresh vegetables with a presence in 100 countries around the world. Last year the company acquired Ready Pac Foods, the Irwindale, Calif.-based producer of salads and fresh-cut produce, expanding its presence in the United States.
With approximately C$60 million in revenues, Conagra’s Del Monte business in Canada is expected to complement Bonduelle Americas Long Life business unit’s canned and frozen vegetable business. The transaction excludes all industrial and personnel assets, as Bonduelle plans to use co-packers and its existing production capabilities.