Del Monte May Exit Canned-Food Business

The unit generates about half the company's annual sales


delmontecannedfood 300x199 Del Monte May Exit Canned Food BusinessSources tell the Wall Street Journal that Del Monte Corp. is looking to sell its canned-food unit, which currently accounts for roughly half of the company’s revenue.

The firm, which was acquired for $4 billion by a consortium of private equity firms led by KKR (KKR) in 2011, wants to concentrate on its dog and cat product business.

3173128472 1422bfda61 200x150 Del Monte May Exit Canned Food Business
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Del Monte’s canned food operations — which produce canned vegetables, fruit cups and soup broths — pull in about  $1.8 billion in annual sales, but have faced increasing competition from private-label rivals.

Morgan Stanley (MS) has been retained to find potential buyers for the canned foods business.

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