Del Monte Foods Buys Sager Creek Vegetable Co. For $75 Million
by March 11, 2015 8:38 am 374 views
San Francisco-based Del Monte Foods Inc., producer of branded and private label canned fruit, vegetable and tomato products, announced Wednesday it has completed the acquisition of the assets of Sager Creek Vegetable Co., headquartered in Siloam Springs.
The cash price for the transaction of $75 million was funded through Del Monte’s revolving credit facility, according to a news release. Sager Creek generates annual revenue of approximately $250 million.
Sager Creek, formerly known as Allens Inc., produces specialty vegetables for foodservice and retail customers. The business also has manufacturing operations in North Carolina. Brands include Veg-All, Freshlike, Popeye, Princella and Allens’, among others.
“This acquisition provides Del Monte the opportunity to expand on Sager Creek’s foodservice business platform and new retail product offerings while driving significant operating synergies in our network of vegetable production facilities,” said Nils Lommerin, CEO of Del Monte Foods.
Sager Creek Acquisitions Corp. acquired the 87-year-old Allens Inc., in February 2014 for $124.7 million, four months after Allens filed for Chapter 11 bankruptcy.
Allens was founded in 1926 and owned and operated by multiple generations of the Allen family.
Chris Kiser, CEO of Sager Creek said, “On behalf of our associates, we are honored and proud to become a part of the Del Monte family.”
Del Monte Foods is one of the country’s largest producers, distributors and marketers of premium quality, branded food products for the U.S. retail market.
It is the U.S. unit of Del Monte Pacific Ltd., the Philippines-based pineapple, tomato and fruit juices company.
Del Monte Pacific acquired Del Monte Foods in February 2014 for $1.68 billion.