Del Monte to sell pet brands

Del Monte Foods Company announced that its principal operating subsidiary, Del Monte Corporation, and DLM Foods Canada Corp. have entered into an agreement to sell all its rights in the IVD and Medi-Cal brands as well as its rights in the Techni-Cal brand in the United States and Canada, to Royal Canin for $ 82.5 million. DLM Foods Canada Corp. will manufacture certain products for Royal Canin during a transition period after the sale. Del Monte will also perform certain transition services for Royal Canin during agreed-upon post-closing periods. Under the sale agreement, the IVD brand will be sold to Royal Canin U.S.A. and the Medi-Cal and Techni-Cal brands will be sold to Royal Canin Canada. These brands are sold primarily in the United States and Canada, and generated approximately $ 57 million in revenue in fiscal 2003 for Del Monte Foods.