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Del Monte unit to sell vegetable business to McCall Farms for US$55 million

DEL Monte Pacific on Thursday said that its US subsidiary, Del Monte Foods (DMF), has agreed to sell its Sager Creek vegetable business to McCall Farms - a family-owned business that manufactures brands such as Bruce's Yams, Margaret Holmes and Glory Foods - for US$55 million.

The Sager Creek business produces speciality vegetables for the food service and retail markets; and manufactures several brands including Veg-all, Freshlike, Popeye, Princella, Trappey's and Allens.

As a result of this sale, one production facility in Siloam Springs, Arkansas, will immediately cease operations. DMF will continue to be the point of service for all retail and food-service customers of Sager Creek till early 2018, and will work closely with McCall Farms to support a seamless transition to McCall's organisation.

David Meyers, chief operating officer of DMF, said: "This divesture allows us to focus our energy and resources on strengthening our core business, driving innovation, and exploring new products that meet the evolving needs of today's consumer."

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