Del Monte to Unload 3 Pet Food Brands
Del Monte Foods Co. said Friday it had agreed to sell the rights to three pet food brands to Royal Canin of France for a total of $82.5 million.
The maker of food and pet products said in a statement that the IVD, Medi-Cal and Techni-Cal brands didn’t fit into its plans.
San Francisco-based Del Monte is selling all rights to IVD and Medi-Cal and U.S. and Canadian rights to Techni-Cal.
The three brands contributed about $57 million to Del Monte’s revenue of $2.17 billion in the fiscal year that ended in April, but the company wasn’t expecting them to contribute materially to earnings this fiscal year.
Del Monte will apply about $60 million to $65 million of proceeds from the sale to reduce debt.
The company doesn’t expect to record a material gain or loss from the transaction.
Del Monte’s Canadian subsidiary will make some products for Royal Canin during a transition period after the sale.
A closing date for the transaction wasn’t provided.
Besides the company’s namesake Del Monte products, other Del Monte brands include Contadina, Starkist, Nature’s Goodness, 9 Lives and Kibbles ‘n Bits.
Del Monte shares fell 6 cents to $10.82 on the New York Stock Exchange.
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