Fresh Del Monte to use existing loan to finance Del Monte Foods Europe acquisition

By Sara Rosenberg

New York, July 15 - Fresh Del Monte Produce Inc. plans to use its existing credit facility to primarily finance the approximately €275 million, or $340 million, cash acquisition of some assets and shareholdings of Del Monte Foods Europe, according to a company news release.

"While we will be able to increase our future bottom-line performance, our pro forma leverage will approximate a modest 25%, and we expect to pay off the transaction debt quickly," chairman and chief executive officer Mohammed Abu-Ghazaleh said in the release. "This is consistent with our strategy of making sound strategic investments while deploying our capital in a prudent manner. Given our strong balance sheet, we also have ample flexibility to make additional acquisitions should we decide to do so in the future."

The acquisition, which is expected to close by the fourth quarter, is subject to receipt of regulatory approvals.

Fresh Del Monte is a Coral Gables, Fla., producer, marketer and distributor of fresh fruit and vegetables.

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