Del Monte Pacific (DMPL), a Singapore-based food and beverage firm, has agreed to acquire Del Monte Foods' Consumer Products business in a $1.67bn deal.
DMPL owns the Del Monte brand in the Philippines and is the exclusive licensee for distribution of processed products on the Indian sub continent. It also owns the S&W brand outside the Americas for both processed products and fresh produce.
Del Monte Foods said that the sale would ensure its Pet Products and Consumer Products units are well positioned for growth in the respective markets.
It will also allow the company to focus more on its long-term strategy to strengthen its pet food and pet snacks brand portfolio.
This development comes after a review which determined that a sale of the Consumer Products business would provide best opportunities for the growth of the company's two business portfolios.
The deal is expected to be completed by early 2014.
Following the transaction, Del Monte Foods will change its name to reflect its focus on the pet products market.
Morgan Stanley and Centerview Partners have been appointed as financial advisers to Del Monte Foods.
