Growers hopeful about plant takeover
Tuesday, January 17, 2012
by SUSAN MANN
Vegetable growers consider the purchase of Del Monte Canada Inc., formerly CanGro Foods Inc., by United States-based ConAgra Foods Inc. as a positive development, says a spokesman for the Ontario Processing Vegetable Growers.
In a Jan. 17 press release, ConAgra announced it has reached an agreement to buy all of Del Monte branded packaged fruit, fruit snacks and vegetable products in Canada as well as Aylmer tomato products from the affiliate of Sun Capital Partners, a leading private investment firm. The agreement includes the manufacturing facility in Dresden, located south of Sarnia, and the headquarters office in Toronto. Financial terms weren’t disclosed. The Dresden facility processes vegetables, such as tomatoes, beets, potatoes and sweet potatoes.
The transaction is subject to the satisfaction of closing conditions and applicable regulatory reviews, ConAgra’s release says.
John Mumford, general manager of the Ontario Processing Vegetable Growers, says the company’s ownership by the investment firm created uncertainty among growers and company employees. “I don’t think we’ve seen any expansion or anything like that.”
In fact, three years ago Sun Capital closed both the vegetable canning plant in Exeter, north of London, and the fruit cannery in St. Davids near Niagara Falls.
Mumford says growers were aware Sun Capital was soliciting bids for Del Monte and they had heard ConAgra was one of the bidders.
The purchase of Del Monte by the Omaha-based food giant, ConAgra, is considered to be positive because the company is already involved in the tomato business and it bought Del Monte for a reason, Mumford says. “We see this as a very positive thing. We’re hoping that obviously it will lead to continued investment.”
ConAgra’s press release says it bought the company to support its strategic plan to grow core businesses, expand into strategic adjacencies, and build its international presence. ConAgra Foods Canada Inc. has more than 300 employees at three locations, including its Canadian headquarters in Mississauga.
Del Monte Canada has 190 employees and had revenues of $150 million for the 2011 fiscal year. BF