WALNUT CREEK, CA – Citing a lack of alignment with the company’s core business, Del Monte Food, Inc. has announced that it has sold its Sager Creek vegetable business to McCall Farms, Inc.

“The Sager Creek brands do not align with the long-term business strategies and growth opportunities for Del Monte Foods,” said Dave Meyers, Chief Operating Officer of Del Monte Foods. “This divesture allows us to focus our energy and resources to strengthen our core business, driving innovation and exploring new products and experiences that meet the evolving needs of today’s consumer.”

McCall Farms—a family-owned producer of Southern-style products under four nationally distributed brands—Glory Foods®, Margaret Holmes®, Peanut Patch® and Bruce’s Yams®—acquired Sager Creek and, with it, the several brands it operates. Sager Creek, a producer of specialty vegetables for the foodservice and retail markets, manufactures several brands including Veg-all®, Freshlike®, Popeye®, Princella®, Trappey's®, and Allens®.

As a result of the sale, Del Monte noted in a press release, one production facility in Siloam Springs, Arkansas, will cease operations effective immediately. Del Monte Foods will continue to be the point of service for all retail and foodservice customers of Sager Creek through early 2018 and will work closely with McCall Farms to support a seamless transition to the McCall’s organization.

Del Monte also noted that warehouse operations at Kenwood, Jefferson and Springdale, Arkansas-locations are unaffected by the sale and will continue to support the ongoing logistics needs of Del Monte Foods and its retail and foodservice customers.

The terms of the sale were not disclosed in the company’s press release, but a Business Inquirer report quoted the purchasing price at $55 million. Del Monte initially purchased Sager Creek in early-2015.

AndNowUKnow will continue to report on important changes in the produce industry.

Del Monte Foods McCall Farms Sager Creek