• October 7, 2008

Del Monte Foods Company has completed the sale of the 65-year-old StarKist brand to Korean seafood giant Dongwon Industries for about $359 million.

"The divestiture of StarKist improves Del Monte's margin structure, eliminates a source of earnings volatility and reduces debt leverage," stated Rick Wolford, Chairman and CEO of Del Monte Foods, in a release. He said this enables Del Monte to focus on faster-growing, higher-margin branded businesses.

Ingu Park, Vice Chairman of Dongwon Enterprise, said the brand gives his company a foothold in the U.S. market. "We will continue to leverage the value this brings as we build upon its 37% market share and number one position in the shelf-stable tuna category in the United States," he said.

Del Monte has inked a two-year agreement with Dongwon in which Del Monte will provide warehousing, distribution, transportation, sales, IT and administration for the businesses sold to Dongwon.--Karl Greenberg