San Francisco-based Del Monte Foods, producer of branded and private label canned fruit, vegetable and tomato products, has acquired the assets of Sager Creek Vegetable Co., a producer of specialty vegetables for the food service and retail markets headquartered in Siloam Springs, Arkansas.
Sager Creek Vegetable Co., formerly known as Allens Inc., manufactures brands like Veg-all, Freshlike, Popeye, Princella Trappey’s and Allens, among others.
The Sager Creek business generates annual revenue of approximately $250 million. The cash price for the transaction of $75 million was funded through Del Monte’s revolving credit facility.
“This acquisition provides Del Monte the opportunity to expand on Sager Creek’s food service business platform and new retail product offerings while driving significant operating synergies in our network of vegetable production facilities,” said Nils Lommerin, CEO of Del Monte Foods.
Sager Creek acquired the Allens business in a bankruptcy proceeding in 2014. Allens was founded in 1926 and owned and operated by multiple generations of the Allen family.
Chris Kiser, CEO of Sager Creek, said, “On behalf of our associates, we are honored and proud to become a part of the Del Monte family.”