KKR-backed Del Monte Consumer to divest canned foods arm for $1.7bn


fruit_170sqKKR-backed Del Monte Foods Consumer Products has agreed to sell its canned foods business to Singapore-listed Del Monte Pacific in a $1.7bn deal.

The canned food arm drew interest from food industry players including Pinnacle Foods and Fresh Del Monte when it was put up for sale in the summer.

Del Monte Foods, which is also backed by private equity firm Centerview Partners, put the slow-growing division up for sale to concentrate on its pet foods business.

Previous reports suggested a deal could value the business at more than $1.5bn.

Del Monte posted sales of $3.82bn for the previous fiscal year, which ended in April.

It was bought by a KKR-led consortium for $5.3bn, including $1.3bn of debt, in 2011.

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