Del Monte Pacific Limited Inc. is selling its US-based Sager Creek vegetable business for $55 million, a move that will allow the company to focus on core business and explore new products.
DMPL said in a disclosure to the stock exchange unit Del Monte Foods Inc. signed an agreement to sell the vegetable business to McCall Farms Inc., a family-owned firm that manufactures brands such as Bruce’s Yams, Margaret Holmes and Glory Foods.
“This divesture allows us to focus our energy and resources on strengthening our core business, driving innovation, and exploring new products that meet the evolving needs of today’s consumer,” DMFI chief operating officer David Meyers said.
The Sager Creek business produces specialty vegetables for the foodservice and retail markets, and manufactures several brands, including Veg-all®, Freshlike®, Popeye®, Princella®, Trappey’s® and Allens®.
One production facility in Siloam Springs, Arkansas, will immediately cease operations following the sale.
DMFI said it would continue to be the point of service for all retail and foodservice customers of Sager Creek through early 2018, and work closely with McCall Farms to support a seamless transition to McCall’s organization.
DMPL posted a net income of $0.7 million in the the first quarter of its fiscal year 2017, a turnaround from a loss of $7 million year-on-year, as a result of the robust performance of the Asian business.
DMPL is a global branded food and beverage company that caters to today’s consumer needs for premium quality healthy products. The group has exclusive rights to use the Del Monte trademarks for packaged products in the United States, South America, the Philippines, Indian subcontinent and Myanmar.
The company is 67 percent-owned by NutriAsia Pacific Ltd. and Bluebell Group Holdings Ltd., which are beneficially-owned by businessman Joselito Campos.
The NutriAsia Group is the market leader in the liquid condiments, specialty sauces and cooking oil, in the Philippines.