Mar 11, 2015, 09:00 ET
SAN FRANCISCO, March 11, 2015 /PRNewswire/ -- San Francisco-based Del Monte Foods, Inc., producer of branded and private label canned fruit, vegetable, and tomato products, announced that it has completed the acquisition of the assets of Sager Creek Vegetable Company, a producer of specialty vegetables for the Foodservice and Retail markets headquartered in Siloam Springs, Arkansas.
Sager Creek Vegetable Company, formerly known as Allens, Inc., manufactures well-known brands including Veg-all®, Freshlike®, Popeye®, Princella® Trappey's® and Allens®, among others.
The Sager Creek business generates annual revenue of approximately $250 million. The cash price for the transaction of $75 million was funded through Del Monte's revolving credit facility.
"This acquisition provides Del Monte the opportunity to expand on Sager Creek's Foodservice business platform and new retail product offerings while driving significant operating synergies in our network of vegetable production facilities," said Nils Lommerin, Chief Executive Officer of Del Monte Foods.
Sager Creek acquired the business of Allens, Inc. in a bankruptcy proceeding in 2014. Allens, Inc. was founded in 1926 and owned and operated by multiple generations of the Allen family.
Chris Kiser, Chief Executive of Sager Creek said, "On behalf of our Associates, we are honored and proud to become a part of the Del Monte family."
Del Monte Foods, Inc. is one of the country's largest producers, distributors and marketers of premium quality, branded food products for the U.S. retail market. The Company also produces and distributes private label food products. Del Monte brands include Del Monte®, Contadina®, College Inn®, S&W® and other brand names.
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SOURCE Del Monte Foods, Inc.
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