This would actually double the size of Delmonte’s business with a bold plan to take over H.J. Heinz Co.'s tuna and petfood business, but also its soup and baby food lines. Heinz shareholders also would gain a majority stake in Del Monte, joining two companies that got their start in the 1800s by growing and delivering produce and related products to homes across the country. But whereas Heinz has been a steady ship, with the Heinz family remaining an influential presence for most of its existence, Del Monte's path has been rocky and uncertain since the late 1970s.
Observers point out that Del Monte, possibly along with the StarKist tuna brand, could still be sold at almost any time. The latest investors with a majority stake -a group of venture capitalists known as the Texas Pacific Group, which recently sought a stake in US Airways- aren't expected to stick around forever. The Texas Pacific Group, a group of risk-taking investors, with a reputation as mavericks, finally did the deal. They'd been asked to finance a bid by Richard G. Wolford, a former Dole Foods executive who had been most recently with a venture capital group involved in food industry investments. Wolford brought along Wesley J. Smith, another former Dole employee.
Yet every Del Monte owner so far, including the Texas Pacific Group team, has kept intact a network of employees who understand the basics of agriculture and food processing. Putting fruit in a single-serve package may be somewhat innovative but it still requires the basic ability to grow and handle a ripe piece of produce with care. For many, Del Monte still has the feel of an enduring, old-line company that will be around a long time. Peach crops still ride the trucks to the plants, machines still churn out hundreds of cans a minute and thousands of seasonal workers still show up for 12-hour days to get the pack in on time.
The Heinz deal is awaiting final regulatory approval, but Del Monte staff is working to put the newly acquired products into the San Francisco company's Web pages. Wolford said on a recent earnings conference call that his people have been meeting monthly with Heinz managers.