Del Monte unit acquires broth specialist’s assets for US$99m

DUAL-LISTED Del Monte Pacific on Thursday (Aug 4) announced that its US subsidiary has acquired for US$99 million the intellectual property and inventory associated with the Kitchen Basics brand of ready-to-use stock and broth from McCormick & Company.

The purchase was financed through credit facilities and did not involve the acquisition of any property, plant or equipment, Del Monte said. Founded in 1996, the Kitchen Basics brand calls itself a pioneer in liquid stock, with net sales of about US$45 million. It will join Del Monte’s brand portfolio.

“The acquisition of Kitchen Basics will enable us to leverage synergies across our business to scale our broth and stock portfolio across North America,” said Greg Longstreet, president and chief executive of the US unit Del Monte Foods.

There is heightened interest in broth and stocks over the last few years, as consumers focus more on home meal preparation, health and wellness, added Bibie Wu, chief marketing officer of Del Monte Foods.

Del Monte closed 1.4 per cent or S$0.005 higher at S$0.355 on Wednesday.