<p>Del Monte Pacific Ltd., the Philippines-based pineapple, tomato, and fruit juices company, is buying the consumer food business of U.S. foodmaker Del Monte Foods Co. for $1.68 billion with plans to expand into a new key market.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"> The deal between the two unaffiliated companies gives the Asian firm rights to the Del Monte, Contadina, S&W, and College Inn food brands in the U.S., according to a press release. As a result of this acquisition, Del Monte Foods will instead focus its efforts on the pet food and snack market, while Del Monte Pacific will continue the canned fruit, vegetable, and broth brands. Del Monte Pacific also operates one of the largest pineapple plantations in the world and expects to benefit from the much wider access to the processed pineapple business in the U.S. According to Del Monte Foods, the agreement comes after a strategic review that determined the sale of its Consumer Products business provided the best opportunities for the growth and stewardship of the company’s two differentiated business portfolios.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"> Rolando Gapud, Del Monte Pacific’s Chairman of the Board, states, “This landmark transaction offers DMPL greater access to a well-established, attractive, and profitable branded consumer food business in the world’s biggest market.” He added, “The company expects to generate significant value creation opportunities in the U.S. market through the expansion of DMF’s current product offering to include beverage and culinary products.”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"> The acquired consumer food business will be managed under a separate platform and will be led by a U.S.-based CEO and management team.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"> Del Monte Pacific will finance the acquisition through a combination of approximately $745 million of equity in the company’s new acquisition subsidiary, as well as a long-term $930 million loan. Bloomberg News reports that the company has a market capitalization of S$1.2 billion ($930 million) as of October 11. The listed shares rose 11% to 30 pesos as of the close of trading in Manila, bringing its gain this year to 10%, compared with the 12% advance on the Philippine Stock Exchange Index. The Singapore-listed shares rose as much as 11%.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"> The transaction is subject to receipt of regulatory approvals and other customary closing conditions, and is expected to close no later than the first quarter of 2014. Perella Weinberg Partners LLC served as lead financial adviser and Citibank as a financial advisor to the company. Morgan Stanley & Co and Centerview Partners are acting as financial advisers to Del Monte Foods.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"> Stay tuned to AndNowUKnow as we follow continuing developments on the acquisition of Del Monte Foods.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://www.bloomberg.com/news/2013-10-11/del-monte-pacific-to-pay-1-68-billion-for-u-s-foods-business.html" target="_new"> Bloomberg News </a><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://www.delmontepacific.com/Website/Content.aspx?i=59" target="_new"> Del Monte Pacific </a><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://investors.delmonte.com/" target="_new"> Del Monte Foods </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">
