Del Monte sale

DEL MONTE Foods International, the canned fruit and vegetables group that was the subject of a pounds 229m leveraged management buyout in May 1990, is being sold to Royal Foods of South Africa for pounds 360m. Anglo American Corporation will be providing much of the funding for the acquisition and will become a substantial shareholder in Royal Foods.

The management of DMFI, led by Leon Allen, had been intending to seek a listing on the London stock market this year, but preparations for the float provoked approaches from a number of leading international food groups. Management took the view that a better price would be secured through a trade sale.