Del Monte May Exit Canned-Food Business

The unit generates about half the company's annual sales

   

delmontecannedfoodSources 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.

Safeway Sells Canadian Operation for $6 Billion
Safeway Sells Canadian Operation for $6 Billion

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.


Article printed from InvestorPlace Media, http://investorplace.com/2013/06/del-monte-may-exit-canned-food-business/.

©2016 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.