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SAN FRANCISCO - Del Monte Foods Co. on Friday said it has agreed to sell the rights to three pet-food brands to Royal Canin S.A. of France for a total of $82.5 million, The Associated Press reports.
San Francisco-based Del Monte is selling all rights to IVD and Medi-Cal and U.S. and Canadian rights to Techni-Cal.
The three brands contributed about $57 million to Del Monte's revenue of $2.17 billion in the fiscal year that ended in April, but the company wasn't expecting them to contribute materially to earnings this fiscal year, according to the AP.
Del Monte will apply about $60 million to $65 million of proceeds from the sale to pay down debt. The company doesn't expect to record a material gain or loss from the transaction.
Del Monte's Canadian subsidiary will make some products for Royal Canin during a transition period after the sale.
Besides its namesake Del Monte products, other Del Monte brands include Contadina, Starkist, Nature's Goodness, 9 Lives and Kibbles 'n' Bits.