Heinz, Del Monte complete transaction
Canadian food and pet food businesses and their subsequent merger
with the Del Monte group. The deal will now allow Heinz to focus on
its core ketchup and frozen food businesses.
HJ Heinz, the US food group, has completed the spin-off of all the shares of SKF Foods, a subsidiary formed to hold certain of Heinz's US and Canadian businesses, and merged the unit with a wholly owned subsidiary of Del Monte Foods.
The spin-off and merger were announced in June this year, and involves Heinz' US and Canadian pet food and pet snacks; US tuna; US retail private label soup and College Inn broth; and US infant feeding.
These businesses include the brands StarKist tuna, 9-Lives cat food, Kibbles 'n Bits dog food, Pup-Peroni and Pounce pet snacks, and Heinz Nature's Goodness baby food.
Heinz chairman, president and CEO William R. Johnson said: "We are delighted that this transformative transaction has been completed. It has been designed to make Heinz a more focused company capable of consistent growth, higher margins and returns, and improved shareholder value.
"Now that we have completed the transaction on schedule, we will refocus our US business against two highly attractive food categories - ketchup, condiments & sauces and frozen foods - across all foodservice and retail channels. With over $8 billion in sales, Heinz will be the most international US-based food company. Approximately 60 per cent of our sales now come from outside the country."
Heinz said that as part of the deal, new financing for the spun-off businesses had been obtained, approximately $1.1 billion of which has been distributed to Heinz itself. The company said it would use this case to reduce its debt levels.
