| NEW YORK, July 9
NEW YORK, July 9 Pinnacle Foods and Fresh
Del Monte are among the companies considering offers for
Del Monte Foods' canned foods business, a deal that could be
worth more than $1.5 billion, four people familiar with the
process said on Tuesday.
San Francisco-based Del Monte Foods, which is backed by
private equity firms including KKR & Co LP and
Centerview Partners, has been exploring a sale of its
slow-growing canned foods business as it looks to concentrate on
its pet foods unit, the sources said.
Del Monte Foods is speaking to companies in the food
industry about the sale and has not focused on talks with
private equity buyers, the sources said, adding that the process
is still in the early stages. A deal could be valued at over
$1.5 billion, two sources said.
All the sources asked not to be named because the matter is
not public. Del Monte Foods declined to comment. Fresh Del
Monte, Pinnacle Foods, KKR and Centerview could not be reached
A group of private equity firms led by KKR and Centerview
acquired Del Monte Foods in 2011 for $5.3 billion including
Fresh Del Monte, a producer and distributor of fresh fruit
and vegetables, was spun off from Del Monte Foods in 1989, and
is no longer affiliated with its former parent.
In the fiscal year ended April 2013, Del Monte Foods had net
sales of $3.82 billion. Its consumer foods business, which also
includes Contadina tomatoes and College Inn broths, accounted
for 48 percent of sales.
The remaining portion of its revenue came from its pet food
business, which has brands such as 9 Lives cat food and Milk
Bone dog biscuits.
Del Monte Foods is in the process of trying to revitalize
its brand, which has lost ground as consumers have moved toward