According to four people who are familiar with the matter, Pinnacle Foods and Fresh Del Monte were considering placing an offer for Del Monte Foods. The deal for the canned foods business of Del Monte Foods could amount to more than U$1.5 billion.
The company was in the process of revitalizing its brand due to losing ground as consumers moved toward fresher produce. The San Francisco-based company wanted to focus on its pet foods unit instead, said the sources. As a result, Del Monte Foods has been looking at selling its canned food business unit. In fact, the company has been talking to companies in the food industry regarding the sale. Two sources added that the process was still in the early stages. The company has not approached private equity buyers yet.
Del Monte Foods refused to make a comment. Meanwhile, Fresh Del Monte and Pinnacle Foods were unavailable to comment.
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