Fresh Del Monte Produce has signed an agreement to acquire certain assets and shareholdings that comprise Del Monte Foods Europe, including its operations in Europe, Africa and the Middle East. The acquisition, which is expected to close by the fourth quarter of 2004, will be made for approximately EUR 275 million ($340 million) in cash, primarily financed through the company's credit facility. The transaction is subject to receipt of regulatory approvals.
Fresh Del Monte's acquisition of Del Monte Foods Europe, a vertically integrated producer and distributor of processed fruit and vegetables, juices, snacks and desserts, will add approximately $370 million of sales and an array of products and brands to Fresh Del Monte's existing portfolio of fresh and fresh-cut produce. In addition, the acquisition strengthens the company's presence in Europe and other key markets. Del Monte Foods Europe's beverages and deciduous fruit are processed at facilities in England, Greece, South Africa and Italy, while its pineapple is cultivated and processed at its plantations and canneries in Kenya and Thailand.