Del Monte

Del Monte: to lift halt at 10am. Has entered into a definitive agreement to acquire the consumer food business of Del Monte Foods (DMF), a privately-owned US corporation, for US$1.675b, subject to regulatory approvals. DMF owns the Del Monte brand rights for processed food pdts in the US and South America, and further includes the Contadina, S&W and College Inn brands. DMF’s consumer business has a strong portfolio of leading brands, with seasoned employees, healthy cash flows and US$1.8b sales and US$178m of adjusted EBITDA in FYApr13. The acquisition will be finance through a combination of ~US$745m of equity financing, as well as long term debt financing of ~US$930m that have been committed by a syndicate of bank lenders. As part of the equity financing, Del Monte intends to issue common and preferred shares in the market. The landmark transaction offers Del Monte greater access to a well-established, attractive and profitable branded consumer food business in the US – the world’s biggest market – where Del Monte currently does not have a direct presence in. Del Monte’s latest announcement reflects the continued interest in F&B-related M&A as a global theme. Other F&B-related counters on SGX include Thai Bev, F&N, Yeo Hiap Seng, Petra, JB Foods, Etika, QAF, Consciencefood, Auric Pacific, Hosen, Sun Moon.