Del Monte Foods sells canned foods business for $1.7 billion

SAN FRANCISCO — Del Monte Foods will sell its consumer products business to Del Monte Pacific Limited for $1.675 billion in order to focus on the pet products market, Del Monte Foods said.

Del Monte Pacific Limited, or DMPL, owns the Del Monte brand in the Philippines and is the exclusive licensee on the Indian subcontinent for processed products. The company, which is publicly traded in Singapore and the Philippines, also owns the S&W brand outside the Americas for both processed food products and fresh produce and is a long-term supplier of processed pineapple for Del Monte Foods.

Del Monte Foods said that given the distinct operations and markets of Del Monte Foods' two segments — pet products and consumer products — the sale of the consumer products segment will ensure that both are positioned for growth. Upon closing of the deal, Del Monte Foods will change its name to reflect its focus on the $20 billion pet products market, emphasizing pet snacks and pet specialty products. Del Monte's pet products include such pet food brands as Meow Mix, Kibbles 'n Bits, Milk-Bone, 9Lives and others.

"Over the last two years, we have made significant investments — operationally, strategically and organizationally — to build the consumer products and pet products segment into businesses capable of capturing the significant opportunity available to each," Del Monte Foods CEO Dave West said. "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."