SAN FRANCISCO, CA - Del Monte Foods, Inc.’s subsidiary company Vegetable Acquistion Corp. has purchased fellow San Francisco-based company Sager Creek Vegetable Co. in a $75 million acquisition.
“The acquisition of Sager Creek’s business provides Del Monte the opportunity to expand on Sager Creek’s food service business platform, while driving significant operating synergies in our network of vegetable production facilities,” Del Monte Pacific Ltd., listed parent firm of Del Monte Foods, Inc., told the Philippine Stock Exchange, according to a Business Worlds report.
Sager Creek’s popular brands include Veg-All, Freshlike, Popeye, Princella and Allens’, producing specialty vegetables for retail and foodservice markets located in Sloam Springs, Arkansas. The company also has manufacturing operations in North Carolina and Wisconsin when it acquired Allen Canning Co. in a bankruptcy proceeding in 2014.
“On behalf of our associates, we are honored and proud to become a part of the Del Monte family,” Chris Kiser, Chief Executive of Sager Creek, told 5 News.
According to the Business World report, the acquisition was financed through Del Monte’s revolving credit facility “secured by the acquired assets,” established through auction along with negotiations that took place between parties.
Del Monte will take over Sager Creek’s property, plant equipment, intellectual property, and certain working capital assets, but exclude accounts receivable. This is a transaction the company stated would give it “access to new retail product offerings.”
Stay tuned to see what new opportunities this will present for the growing industry company.
