Del Monte Pacific Ltd. said its unit Del Monte Foods Inc. (DMFI) is acquiring assets from McCormick and Company’s Kitchen Basics product line for $99 million.
The company said the acquisition was done through an auction process and negotiations between parties and was financed through credit lines.
The assets involve intellectual property and inventory of ready-to-use stock and broth with no property, plant and/or equipment acquired. Del Monte did not provide details of the acquired assets.
Kitchen Basics products are distributed nationally in the US.
“The Kitchen Basics brand was founded in 1996 as the pioneer in liquid stock and remains an industry leader in the US today, with net sales of approximately $45 million,” Del Monte said.
The company said the acquisition is consistent with DMFI’s overall growth strategy, as it focuses on innovation, renovation and customization of its iconic brand portfolio.
“Kitchen Basics will join Del Monte’s brand portfolio as the company expands its retail presence in the category,” it said.
Bibie Wu, DMFI chief marketing officer, said there has been a heightened interest in broth and stocks in the US over the last few years as consumers double down on home meal preparation, health and wellness.
“Del Monte Foods has gone through a positive transformation over the past five years, and we have become a leading innovative CPG growth company,” meanwhile said Greg Longstreet, DMFI president.
“As we plan for the next decade of growth, we’re committed to strengthening our branded product portfolio to meet consumers’ changing needs. The acquisition of Kitchen Basics will enable us to leverage synergies across our business to scale our broth and stock portfolio across North America,” he added.
