Del Monte Foods, the 138-year-old canned fruits and vegetables company, is undergoing a “value-maximizing sale process” as part of its overall strategic balance-sheet restructuring, according to today’s company press release.
Del Monte and certain affiliates have initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of New Jersey. The company has secured a commitment for $912.5 million in debtor-in-possession financing, including $165 million in new funding, from some of its existing lenders.
Greg Longstreet, President and CEO of Del Monte Foods told investors, “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. With an improved capital structure, enhanced financial position and new ownership, we will be better positioned for long-term success.”
“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,” Longstreet concluded.
Del Monte began in 1886 and opened its iconic cannery in San Francisco in 1907. By 1909, the company was running the world’s largest fruit and vegetable cannery.
By CEO NA Editorial Staff
