Del Monte Food Co. Files for Bankruptcy, Looks for Buyer
Del Monte Foods Corp., one of the country’s largest producers, distributors and marketers of branded food products, has filed for Chapter 11 bankruptcy and is looking for a buyer.
The nearly 140-year-old company’s portfolio consists of such brands as Del Monte, Contadina, College Inn, Kitchen Basics, JOYBA, Take Root Organics, and S&W.
According to the legacy CPG, it’s now pursuing a value-maximizing sale process as part of an overall strategic balance-sheet restructuring.
Del Monte has secured a commitment for $912.5 million in debtor-in-possession financing, inclusive of $165 million in new funding, from some of its existing lenders, subject to court approval. This financing, along with cash from ongoing operations, is expected to provide sufficient liquidity during the sale process. The company intends to continue business operations, so this funding will also allow for ongoing operations, including its pack season that is currently underway.
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“This is a strategic step forward for Del Monte Foods. After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods," said Greg Longstreet, president and CEO of Walnut Creek, Calif.-based Del Monte Foods. "With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success."
Continued Longstreet: “While we have faced challenges intensified by a dynamic macroeconomic environment, Del Monte Foods has nourished families for nearly 140 years, and we remain committed to our mission of expanding access to nutritious, great-tasting food for all. I am deeply grateful to our employees, growers, customers and vendors, as well as our lenders, for their support in helping us achieve our long-term goals."
Del Monte isn’t the only food company experiencing major operational changes.
The century-old Chef Boyardee brand is moving over to the Hometown Food Co. from Conagra Brands Inc. In a $600 million deal, Conagra is spinning off the shelf-stable food product business to Hometown Food, part of the Brynwood Partners private equity firm. Through this agreement, Hometown Food will acquire an 820,000-square-foot manufacturing facility in Milton, Pa., along with all assets and operations dedicated to the Chef Boyardee line, except for the brand’s frozen skillet meals. Those items will be licensed by Hometown to Conagra. The transaction is expected to close during the first quarter of Conagra's fiscal year 2026, which is the second quarter of the 2025 calendar year.
Also, last week, Mars Inc. revealed that its intended acquisition of Kellanova had cleared U.S. regulatory hurdles. The acquisition, originally revealed in August of last year, will see Mars paying $83.50 per share in cash, for a total consideration of $35.9 billion, including assumed net leverage. Analysts described the deal as the largest CPG transaction since the merger between Kraft and H.J. Heinz in 2015. While exact timing can’t be predicted, Mars and Kellanova expect the acquisition to close toward the end of 2025. Once the transaction is complete, Kellanova will become part of Mars Snacking.
CPG acquisition news hasn’t slowed down this week, either, with General Mills Inc. completing the sale of its U.S. yogurt business to Lactalis, and up-and-coming brand Bubbies Ice Cream revealing that it was acquired by the Japanese investment firm Marubeni Corp.
