Del Monte Foods Buying Sager Creek of Siloam Springs for $75M Cash


Del Monte Foods Buying Sager Creek of Siloam Springs for $75M Cash

The operations and assets of the vegetable company formerly known as Allens Inc. of Siloam Springs are set to change owners once again in a $75 million cash deal.

Del Monte Foods Inc. of San Francisco said Wednesday that it has completed its acquisition of the assets of Sager Creek Vegetable Co., which had purchased Allens out of bankruptcy last year in a $160 million deal

Allens, a family-owned vegetable and food processor was founded in 1926, produces brands including Veg-all, Freshlike, Popeye, Princella and Trappey’s.

In a news release, Del Monte said the Sager Creek business "generates annual revenue of approximately $250 million." Del Monte said its $75 million purchase of Allen is being funded through Del Monte’s revolving credit facility. 

"This acquisition provides Del Monte the opportunity to expand on Sager Creek’s Foodservice business platform and new retail product offerings while driving significant operating synergies in our network of vegetable production facilities," Nils Lommerin, Del Monte Foods' CEO, said in the news release.

"On behalf of our associates, we are honored and proud to become a part of the Del Monte family," Sager Creek CEO Chris Kiser said in a news release.

Del Monte Foods is one of the country’s largest producers, distributors and marketers of branded food products. Its brands include Del Monte, Contadina, College Inn and S&W. It has about 7,800 employees, and the company says its domestic fruit, vegetable, tomato and broth packaged foods represent about $1.8 billion in annual sales.


More On This Story