Fresh Del Monte secures US$285m deal for key Del Monte Foods assets as court sale advances

USA – Del Monte Foods has confirmed Fresh Del Monte Produce as the buyer of its vegetable, tomato, and refrigerated fruit businesses, as the food group moves closer to completing a court supervised sale of its assets.

Fresh Del Monte agreed to pay US$285 million for the businesses, with the deal also covering the assumption of certain liabilities.

The transaction remains subject to approval by the US Bankruptcy Court for the District of New Jersey, with a hearing scheduled for January 28, 2026. The companies expect the deal to close by the end of the first quarter of 2026, pending regulatory clearances.

Fresh Del Monte reunites the brand

The sale gives Fresh Del Monte global ownership of the Del Monte brand, subject to existing licensing arrangements. This marks the first time in nearly 40 years that the brand will sit under a single owner.

The assets include packaged vegetable products under the Del Monte and S and W names, tomato brands such as Contadina and Take Root Organics, Del Monte refrigerated fruit, and Joyba beverages. The deal also covers selected facilities in Texas, Illinois, Wisconsin, and Washington, as well as sites in Mexico and Venezuela.

Mohammad Abu Ghazaleh, chairman and chief executive of Fresh Del Monte, said the acquisition aligns with a long held strategy.

“Bringing the Del Monte brand back together reflects a long held conviction of mine,” he said. “By uniting fresh and shelf stable food under one strategy, we are honouring the brand’s legacy while supporting it for continued relevance and growth.”

Fresh Del Monte said it plans to run the acquired brands through a dedicated business unit and expects no immediate changes to products currently on store shelves. The company will fund the purchase through a mix of cash and a revolving credit facility.

Other buyers and plant closure impact

As part of the wider sale process, B and G Foods will acquire the broth and stock business, including the College Inn and Kitchen Basics brands. Pacific Coast Producers will take over the shelf stable fruit business, excluding production assets, with rights to use the Del Monte and S and W brands for ambient fruit products in the United States, Puerto Rico, and Mexico.

The sale comes against the backdrop of recent operational changes at Del Monte Foods. The company has confirmed plans to close its Modesto, California processing plant, a move expected to affect hundreds of workers. Management has said the closure reflects cost pressures and the need to streamline operations during the restructuring process.

Despite these changes, Del Monte Foods said it continues to supply customers and meet orders across its portfolio during the transition.

Chief executive Greg Longstreet said the auction outcome showed the strength of the company’s assets.

“This outcome represents a successful result in our sale process and demonstrates the enduring value of Del Monte Foods’ brands and operations,” Longstreet said. “We are committed to working closely with all parties to support a smooth transition.”

The company said it will continue to support employees, growers, suppliers, and retail partners as ownership of its businesses changes hands.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.