Singapore-listed food and beverage company Del Monte Pacific has acquired U.S.-based Del Monte Foods Consumer Products for about $1.7 billion, a move that will reunite the firm with its mother brand.
The acquisition will include the U.S. business' leading canned fruit, vegetable and broth business. The deal is expected to close no later than the first quarter of 2014.
"This acquisition of Del Monte U.S.' consumer foods business is really strategic for us," Luis F Alejandro, chief operation officer at Del Monte Pacific told CNBC's
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"It opens us up to a well-established branded consumer foods business in the world's biggest market. Prior to the acquisition, the U.S. was one of the few markets where our company did not have any direct presence or have its own brand," added Alejandro.
Del Monte is 67 percent owned by NutriAsia Pacific Limited (NPL), owned by the NutriAsia Group, which is majority-owned by the Campos family of the Philippines. The U.S.-based Del Monte Foods is a separate company which was acquired in 2011 by a consortium of private equity groups including KKR.
Alejandro also said he did not feel threatened about venturing into the U.S. market amid fierce competition in the food and beverage sector, especially with the rise of club stores, such as the likes of Costco, which have made conditions tougher for private labels like Del Monte.