Campos-led Del Monte Pacific Ltd. closed a $99 million deal to acquire the assets of the Kitchen Basics brand from American seasonings and condiments giant McCormick & Co.
Kitchen Basics’ products are distributed nationally in US. It offers a range of organic stocks and broths, which are used to make soups, stews and sauces.
“Del Monte Foods has gone through a positive transformation over the past five years, and we have become a leading innovative [consumer packaged goods] growth company,” Greg Longstreet, president and CEO of Del Monte Foods, said in a stock exchange filing on Thursday.
Del Monte Foods is the US subsidiary of Del Monte Pacific, which is listed in the Philippines and Singapore.
“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,” added.
The Kitchen Basics brand was founded in 1996 as the pioneer in liquid stock and remains an industry leader in the U.S. today, with net sales of about $45 million, the disclosure showed.
The assets acquired include intellectual property and inventory. No property, plant and/or equipment were acquired, Del Monte said.
“We’ve seen heightened interest in broth and stocks over the last few years as consumers double down on home meal preparation, health and wellness,” said Bibie Wu, chief marketing officer of Del Monte Foods.
“Kitchen Basics is well-known for its culinary quality. We’re excited to bring Kitchen Basics into the Del Monte family of brands to help people create healthful meals they love,” Wu added.