Del Monte Foods Announces Successful Bidders in Court-Supervised Auction Process

Rhea-AI Summary

Del Monte Foods (NYSE:BGS) announced that it selected three successful bidders in a court-supervised auction and negotiated asset purchase agreements for substantially all assets across its business segments.

Buyers: Fresh Del Monte Produce (NYSE:FDP) for vegetable, tomato, refrigerated fruit, JOYBA and global Del Monte brand/IP (subject to licenses); B&G Foods (NYSE:BGS) for the Broth & Stock segment including College Inn and Kitchen Basics; Pacific Coast Producers for shelf-stable fruit rights (U.S. and Mexico).

The sales are subject to U.S. Bankruptcy Court approval at a hearing on Jan 28, 2026 and customary closing conditions, with closings expected by the end of Q1 2026. The company will coordinate transitions while continuing operations during the Chapter 11 process.

Positive

• Asset sales cover substantially all Del Monte Foods operations
• Fresh Del Monte obtains global ownership of Del Monte brand/IP
• Closings expected by end of Q1 2026

Negative

• Sales subject to U.S. Bankruptcy Court approval on Jan 28, 2026
• Business will transition to three separate owners, risking fragmentation
• Ongoing Chapter 11 process implies elevated execution and regulatory risks

News Market Reaction

+3.89%

1 alert

+3.89% News Effect

On the day this news was published, FDP gained 3.89%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Court hearing date: January 28, 2026 Transaction timing: By end of Q1 2026 Chapter: Chapter 11

3 metrics

Court hearing date January 28, 2026 U.S. Bankruptcy Court approval hearing for Del Monte sale transactions

Transaction timing By end of Q1 2026 Expected closing timeframe for Del Monte sale transactions

Chapter Chapter 11 Del Monte Foods conducting a court-supervised auction in Chapter 11 process

Market Reality Check

Price: $38.12 Vol: Volume 1,407,519 vs 20-da...

normal vol

$38.12 Last Close

Volume Volume 1,407,519 vs 20-day average 1,633,312 — activity slightly below recent norms. normal

Technical Price $4.26 trades below 200-day MA of $4.67, well under 52-week high of $8.06.

Peers on Argus

Peers show mixed moves: MAMA -3.36%, NATR -0.76%, LWAY -1.95% vs WEST +1.13% and...

Peers show mixed moves: MAMA -3.36%, NATR -0.76%, LWAY -1.95% vs WEST +1.13% and USNA +1.09%, while BGS is up 1.91%. No sector-wide pattern indicated.

Historical Context

5 past events · Latest: Jan 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 05	Leadership appointment	Positive	-1.0%	Hired new EVP of Sales to strengthen customer development and execution.
Nov 05	Q3 2025 earnings	Neutral	+1.5%	Reported lower net sales, flat adjusted EBITDA, and narrowed full-year guidance.
Oct 28	Dividend declaration	Positive	-3.7%	Declared regular quarterly dividend of $0.19 per share with high indicated yield.
Oct 27	Asset divestiture	Neutral	-3.6%	Announced sale of Canadian Green Giant and Le Sieur product lines to Nortera.
Oct 22	Earnings call notice	Neutral	-3.5%	Set date and time for Q3 2025 earnings call and webcast.

Pattern Detected

Recent positive corporate events (dividend, leadership hire) have often seen negative next-day moves, suggesting a tendency for selling into good news.

Recent Company History

Over the last few months, B&G Foods has balanced portfolio reshaping and capital structure concerns. It announced a leadership addition on Jan 5, 2026, continued divestitures like the Canadian Green Giant business in late Oct 2025, and maintained its long-running $0.19 quarterly dividend. Q3 2025 results showed softer sales and impairments, while an S-3 shelf registration on Aug 4, 2025 preserved financing flexibility. Today’s acquisition of Del Monte’s Broth & Stock segment fits into this pattern of portfolio repositioning and balance-sheet management focus.

Regulatory & Risk Context

Active S-3 Shelf · $800 million

Shelf Active

Active S-3 Shelf Registration 2025-08-04

$800 million registered capacity

An effective Form S-3 filed on Aug 4, 2025 allows B&G Foods to issue up to $800 million of securities over time, providing flexibility for debt repayment, working capital, acquisitions or capex. Any use of this shelf could be dilutive or leverage-neutral depending on structure.

Market Pulse Summary

This announcement highlights B&G Foods’ selection as buyer of Del Monte Foods’ Broth & Stock segment...

Analysis

This announcement highlights B&G Foods’ selection as buyer of Del Monte Foods’ Broth & Stock segment in a Chapter 11 court-supervised process. The deal would add established broth brands, subject to U.S. Bankruptcy Court approval on January 28, 2026 and closing by end of Q1 2026. Investors may track execution of the broader portfolio strategy, balance-sheet impacts, and any future use of the existing $800 million shelf registration to finance acquisitions or debt management.

Key Terms

asset purchase agreements, court-supervised auction process, going-concern businesses, U.S. Bankruptcy Court, +2 more

6 terms

asset purchase agreements financial

"The Company has negotiated asset purchase agreements (the "Sale Transactions") with the three parties"

An asset purchase agreement is a legal contract in which a buyer agrees to buy specific assets of a business—such as equipment, contracts, inventory or intellectual property—rather than buying the whole company. It matters to investors because it determines exactly what is changing hands, who keeps any debts or liabilities, and how future profits and tax obligations will be allocated; think of it as buying furniture and fixtures from a house instead of buying the entire property.

court-supervised auction process regulatory

"announced that it has selected three successful bidders in its court-supervised auction process"

A court-supervised auction process is a legally overseen sale in which a company’s assets or business units are put up for competitive bidding under a judge’s control to ensure openness, fair treatment of creditors, and that the highest viable price is obtained. For investors it matters because the outcome can determine who ends up owning valuable assets, how much creditors and shareholders recover, and whether existing securities retain value or become worthless—like selling a house at an agent-led auction to get the best offer while a court watches to protect all parties.

going-concern businesses financial

"for substantially all of its assets and business operations as going-concern businesses"

Going-concern businesses are companies expected to continue operating and meet their bills and obligations for the foreseeable future, rather than being forced to liquidate or shut down. For investors this matters because a company viewed as a going concern is generally less risky: its assets, earnings potential and stock value are judged on the basis that the business will keep running, while doubt about going concern can signal higher default or bankruptcy risk, like a car that may soon stop running.

U.S. Bankruptcy Court regulatory

"subject to the approval of the U.S. Bankruptcy Court for the District of New Jersey"

A U.S. Bankruptcy Court is a federal court that handles legal cases when people or businesses cannot pay their debts, overseeing plans to reorganize the business or sell assets to repay creditors. Its rulings determine who gets paid, how much, and whether a company can continue operating, so investors watch these proceedings like a referee’s decision in a game that decides who keeps what and how much value remains.

chapter 11 regulatory

"Additional information regarding the Company's chapter 11 process is available at"

Chapter 11 is a U.S. bankruptcy process that lets a financially distressed company keep operating while it reorganizes its debts and business plan under court supervision. Think of it as a formal pause that allows the company to renegotiate payments, shed contracts or assets, and seek a path to profitability instead of being liquidated; investors watch it because it can change the value and priority of claims, equity dilution, or the likelihood of recovery.

claims agent regulatory

"Stakeholders with questions can contact the Company's claims agent, Stretto, by calling"

A claims agent is an independent third party hired to collect, verify and process claims for money or other remedies in situations like bankruptcies, class-action settlements or corporate reorganizations. Think of it as a specialized mailroom and accountant combined: it checks paperwork, tracks deadlines and distributes payments. Investors care because the agent’s accuracy and efficiency directly affect whether, how much and how quickly they receive recoveries or compensation.

AI-generated analysis. Not financial advice.

Asset purchase agreements reached across all Del Monte Foods business segments, including Vegetable, Fruit, Tomato, and Broth & Stock businesses 

Company remains focused on delivering high-quality food products through the transition process

WALNUT CREEK, Calif., Jan. 15, 2026 /PRNewswire/ -- Del Monte Foods Corporation II Inc. (the "Company" or "Del Monte Foods"), a leading producer, distributor, and marketer of premium quality, packaged food products, today announced that it has selected three successful bidders in its court-supervised auction process. The Company has negotiated asset purchase agreements (the "Sale Transactions") with the three parties for substantially all of its assets and business operations as going-concern businesses. The Sale Transactions are:

• The sale to Fresh Del Monte Produce Inc. (NYSE: FDP), of the Company's vegetable, tomato, and refrigerated fruit business assets, including Del Monte® and S&W® packaged vegetable brands, Del Monte®, Contadina®, and Take Root Organics® packaged tomato brands, Del Monte® refrigerated fruit brand, and the JOYBA® beverage brand, together with global ownership of the Del Monte® brand and related intellectual property, subject to existing licensing arrangements;
• The sale to B&G Foods, Inc. (NYSE: BGS), of all assets in the "Broth & Stock" business segment, including College Inn® and Kitchen Basics® brands; and
• The sale to Pacific Coast Producers of the shelf-stable fruit business assets (other than production assets), including the rights and licenses to use the Del Monte® and S&W® brands for shelf-stable packaged ambient fruit and ambient fruit sauces, in the United States (including Puerto Rico) and Mexico.

The Sale Transactions are expected to provide Del Monte Foods with a clear path forward for the Company's assets and business operations to continue under the new ownership of three well-regarded strategic operators and represent the highest or otherwise best offers for the Company's assets and businesses.

"This outcome represents a successful result in our sale process and demonstrates the enduring value of Del Monte Foods' brands and operations," said Greg Longstreet, Chief Executive Officer. "These transactions will create an opportunity for our beloved brands and businesses to thrive under the ownership of three of the leading companies in the food industry. We are committed to working closely with all parties to support a smooth transition of operations and are grateful to our team members, customers, and vendor partners for their steadfast commitment and meaningful contributions to Del Monte Foods during this pivotal time."

The successful bidders were selected after careful consideration of all alternative proposals following a comprehensive sale process. The Sale Transactions are subject to the approval of the U.S. Bankruptcy Court for the District of New Jersey (the "Court") at a hearing currently scheduled for January 28, 2026, and customary closing conditions. Following Court approval, the Company will work with the buyers to transition ownership of the businesses and/or related assets in connection with the closing of the Sale Transactions, all of which are expected to occur by the end of the first quarter of 2026.

Del Monte Foods continues to serve customers and fulfill orders across its portfolio of beloved brands at this time. The Company remains committed to supporting its team members, growers, vendors, and suppliers, while delivering high-quality food products that are healthy, delicious, and convenient.

Additional information regarding the Company's chapter 11 process is available at https://cases.stretto.com/DelMonteFoods. Stakeholders with questions can contact the Company's claims agent, Stretto, by calling (833) 228-5497 (US and Canada toll-free) or +1 (714) 263-3709 (International) or emailing DelMonteInquiries@Stretto.com.

Advisors

Herbert Smith Freehills Kramer (US) LLP and Cole Schotz P.C. are serving as legal counsel, Alvarez & Marsal North America, LLC is serving as financial advisor, PJT Partners is serving as investment banker, and C Street Advisory Group is serving as strategic communications advisor to the Company.

About Del Monte Foods

For nearly 140 years, Del Monte Foods has been driven by our mission to nourish families with earth's goodness. As the original plant-based food company, we're always innovating to make nutritious and delicious foods more accessible to consumers across our portfolio of beloved brands, including Del Monte®, Contadina®, College Inn®, Kitchen Basics®, JOYBA®, Take Root Organics® and S&W®. We believe that everyone deserves great tasting food they can feel good about, which is why we responsibly source and produce food for a healthier tomorrow.

For more information about Del Monte Foods and our products, please visit www.delmontefoods.com or www.joyba.com.

The Del Monte Foods entities are the U.S. indirect subsidiaries of Del Monte Pacific Limited (Bloomberg: DELM SP, DELM PM) and are not affiliated with certain other Del Monte companies around the world, including Fresh Del Monte Produce Inc., Del Monte Canada, Del Monte Asia Pte. Ltd., Conagra/Productos Del Monte, or Del Monte Panamerican.

Media Contact
C Street Advisory Group
delmontefoods@thecstreet.com

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SOURCE Del Monte Foods, Inc.

FAQ

What did Del Monte Foods announce on January 15, 2026 regarding its assets?

Del Monte Foods announced agreements to sell substantially all assets to three buyers: Fresh Del Monte Produce, B&G Foods, and Pacific Coast Producers.

How does the sale to B&G Foods (NYSE:BGS) affect Del Monte Foods' Broth & Stock brands?

B&G Foods will acquire all Broth & Stock assets, including the College Inn and Kitchen Basics brands.

When is the Bankruptcy Court hearing for Del Monte Foods' sale transactions?

The U.S. Bankruptcy Court hearing is scheduled for January 28, 2026.

When are the Del Monte Foods sale transactions expected to close?

Closings are expected to occur by the end of Q1 2026, subject to court approval and customary conditions.

What does Fresh Del Monte Produce (NYSE:FDP) acquire in the transaction?

Fresh Del Monte Produce will acquire vegetable, tomato, refrigerated fruit businesses, JOYBA, and global ownership of the Del Monte brand and related IP, subject to licensing arrangements.

Will Del Monte Foods continue operations during the transition?

Yes; the company says it will continue serving customers and fulfilling orders while coordinating transitions with buyers during the Chapter 11 process.