by Christopher Freeburn | June 14, 2013 10:47 am
Sources 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.
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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