Del Monte Foods reportedly hires investment banks to help company explore sale of its canned-food activities; process at early stage, value of business could reach US$2B
June 14, 2013
– US branded food and pet products maker Del Monte Corp has appointed investment banks Centerview Partners LLC and Morgan Stanley (NYSE:MS) to help it explore a sale of its canned-food activities, insiders told the Wall Street Journal.
Del Monte, which starts to pay more attention to its pet-product operations, is gauging interest from possible purchasers for the food unit, the WSJ said. According to the sources, the process is at an early stage.
When taking into consideration Del Monte's valuation in its USD4bn (EUR3bn) takeover by KKR & Co LP (NYSE:KKR) a couple of years ago, the price of its canned-food business could reach USD2bn, the paper noted. The particular division records sales of some USD1.8bn a year, which is about half of the group's total revenue.
A Del Monte representative did not comment to the paper.
In May, Del Monte agreed to acquire Natural Balance Pet Foods Inc, which makes super-premium pet food for dogs and cats, for an undisclosed sum.
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