French processed vegetable producer Bonduelle has signed an agreement with US-based packaged foods company Conagra Brands to acquire its Del Monte processed fruit and vegetable business in Canada for approximately C$43m ($33m).

The transaction is expected to be completed before the end of May, subject to customary closing conditions.

The deal gives Bonduelle the right to use the Del Monte brand on different segments of processed fruits and vegetables, as well as stocks of products marketed by Conagra.

In a statement, the Bonduelle said: “The acquired business excludes all industrial and personnel assets because co-packers and Bonduelle’s existing production capabilities will be used.”

Conagra says that its Del Monte’s business in Canada, with revenues of C$60m ($47m), will complement Bonduelle’s canned and frozen vegetables, which are largely sold under a retailer’s store brands.

“Conagra says that its Del Monte’s business in Canada, with revenues of about C$60m ($47m), will complement Bonduelle’s canned and frozen vegetables.”

Conagra Brands president and chief executive officer Sean Connolly said: “We continue to reshape our portfolio and focus resources in areas that best support our business strategy and drive value creation for shareholders.

“Del Monte is a strong brand in Canada with quality products, and we believe the Del Monte processed fruit and vegetable business will continue to thrive under Bonduelle’s ownership.”

In this transaction, RBC Capital Markets served as financial adviser to Conagra Brands.

Conagra’s brands include Marie Callender’s, Hunt’s, Healthy Choice, Slim Jim, Orville Redenbacher’s, VH, POGO, Aylmer, as well as Alexia, Frontera, Duke’s, and Angie’s Boomchickapop.