Korea's Dongwon buys Starkist business

An established regional player in tuna and canned foods, Dongwon spends $363 million to buy Starkist and expand its business to North America.
South KoreaÆs Dongwon Enterprise will spend $363 million to acquire the Starkist seafood brand and related manufacturing from Del Monte Foods, USA.

Del Monte is selling its manufacturing capabilities in American Samoa, Manta Ecudaor and certain manufacturing assets in Terminal Island, California and Guayaquil, Ecuador. Dongwon will take over all plant employees plus 34 other salaried positions. It will enter a two-year operating services agreement with Del Monte whereby the US company will provide operational services such as warehousing, distribution, transportation, sales, information technology and administration for Dongwon during a transition period.

Del Monte said the sale price is a multiple of six to seven times the average trailing three-year contributed Ebitda of the...
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