Del Monte Foods Receives Court Approval for Sale Transactions

Rhea-AI Summary

Del Monte Foods (BGS) received Court approval on Feb. 6, 2026 for three asset purchase agreements to sell substantially all business assets as going concerns.

The transactions allocate vegetable, tomato, refrigerated fruit, JOYBA beverage and global Del Monte brand rights to Fresh Del Monte Produce (FDP); broth & stock assets including College Inn and Kitchen Basics to B&G Foods (BGS); and shelf-stable fruit rights to Pacific Coast Producers. Closings are expected in Q1 2026, subject to customary conditions.

Positive

• Court approval obtained for three asset sale transactions
• Sale transactions preserve brands as going-concern businesses
• Buyers include established industry players Fresh Del Monte Produce and B&G Foods
• Closings expected in Q1 2026, providing a clear timing window

Negative

• Company is operating under a chapter 11 process
• Transactions remain subject to customary closing conditions and may not close

Key Figures

Sale transactions: 3 asset purchase agreements

1 metrics

Sale transactions 3 asset purchase agreements Court-approved sale transactions for Del Monte Foods’ business segments

Market Reality Check

Price: $38.45 Vol: Volume 4,323,701 is 2.42x...

high vol

$38.45 Last Close

Volume Volume 4,323,701 is 2.42x the 20-day average, indicating elevated interest. high

Technical Trading above 200-day MA, with price at 4.95 vs MA(200) at 4.52.

Peers on Argus

BGS is up 6.68% while key packaged/food peers show mixed moves (e.g., MAMA +1.49...

BGS is up 6.68% while key packaged/food peers show mixed moves (e.g., MAMA +1.49%, NATR +1.74%, WEST -3.95%), suggesting a stock-specific reaction to the Del Monte court approval.

Historical Context

5 past events · Latest: Jan 15 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 15	Broth acquisition deal	Positive	+5.4%	Announced $110M acquisition of College Inn and Kitchen Basics from Del Monte.
Jan 15	Del Monte auction	Positive	+5.4%	Named successful bidders, including BGS for the broth & stock segment.
Jan 05	Executive hire	Neutral	-1.0%	Appointed new EVP of Sales to strengthen customer development and execution.
Nov 05	Q3 2025 earnings	Neutral	+1.5%	Reported lower sales, flat EBITDA, impairments, and narrowed full-year guidance.
Oct 28	Dividend declaration	Positive	-3.7%	Declared $0.19 quarterly dividend, extending an 85-quarter payment streak.

Pattern Detected

Positive corporate actions (acquisitions, asset sales, earnings) have often coincided with modestly positive price reactions.

Recent Company History

Over the past few months, B&G Foods has focused on portfolio reshaping and balance-sheet management. On Oct 27, 2025, it agreed to sell Canadian Green Giant and Le Sueur assets to reduce debt and fund general corporate purposes. Q3 2025 results on Nov 5, 2025 showed softer sales and non-cash impairments but reaffirmed guidance. In mid-January 2026, BGS announced and filed for the acquisition of Del Monte’s College Inn and Kitchen Basics broth and stock business. Today’s court approval advances that earlier agreement toward an expected closing in Q1 2026.

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 shelf filed on Aug 4, 2025 allows B&G Foods to issue up to $800 million of securities, providing flexibility for future financing that could be used for debt repayment, acquisitions, or other corporate purposes depending on structure and usage.

Market Pulse Summary

This announcement confirms court approval of Del Monte Foods’ sale transactions, including B&G Foods...

Analysis

This announcement confirms court approval of Del Monte Foods’ sale transactions, including B&G Foods’ purchase of the broth and stock business. It advances the agreement announced in mid-January 2026 toward closing in Q1 2026, reducing legal and process uncertainty. Investors may watch for final closing timing, transition-service execution, and updated guidance on revenue, EBITDA contribution, and leverage, while also monitoring how frequently B&G taps its $800 million shelf registration.

Key Terms

asset purchase agreements, chapter 11

2 terms

asset purchase agreements financial

"Court approves asset purchase agreements across all Del Monte Foods business"

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.

chapter 11 regulatory

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

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.

AI-generated analysis. Not financial advice.

Court approves asset purchase agreements across all Del Monte Foods business segments, including Vegetable, Fruit, Tomato, and Broth & Stock businesses

Provides a clear path forward for Del Monte Foods' portfolio of brands and businesses under new ownership

Company remains focused on maintaining service continuity for customers and partners through close of transactions

WALNUT CREEK, Calif., Feb. 6, 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 received Court approval for three asset purchase agreements (the "Sale Transactions") 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.

"We are pleased to have reached this important milestone on our path toward securing the future of Del Monte Foods' beloved brands and businesses under new ownership," said Greg Longstreet, Chief Executive Officer. "We have already begun productive discussions with the buyers to support a smooth transition of operations for our team members, customers, vendors, and partners, and continue to focus on delivering high-quality food products through closing."

The Sale Transactions, which are expected to close in the first quarter of 2026, subject to customary closing conditions, were determined to represent the highest or otherwise best offers for the Company's assets and businesses following a competitive court-supervised auction process.

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.delmonte.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

FAQ

What did Del Monte Foods announce on Feb. 6, 2026 regarding asset sales involving BGS?

Del Monte Foods announced Court approval to sell its broth & stock business, including College Inn and Kitchen Basics, to B&G Foods. According to the company, this is one of three approved asset purchase agreements intended to transfer operations to new owners as going concerns.

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

The sale transactions are expected to close in the first quarter of 2026, subject to customary closing conditions. According to the company, closings follow a court-supervised auction process and remaining steps include normal regulatory and transactional closing requirements.

Which Del Monte brands are included in the sale to Fresh Del Monte Produce (FDP)?

The sale to Fresh Del Monte Produce includes vegetable, tomato, refrigerated fruit assets and global ownership of the Del Monte brand. According to the company, included brands are Del Monte, S&W, Contadina, Take Root Organics, and the JOYBA beverage brand.

How will the asset sales affect Del Monte Foods' customer service and operations during transition?

The company said it will focus on maintaining service continuity for customers and partners through closing. According to the company, buyers and management have begun discussions to support a smooth operational transition for employees, vendors, and customers.

Where can stakeholders find more information about Del Monte Foods' chapter 11 process and claims?

Stakeholders can access chapter 11 case information online and contact the company's claims agent for questions. According to the company, details are available at the designated case website and via Stretto by phone or email for claims inquiries.