KKR, along with buyout funds Vestar Capital Partners and Centerview Partners, have offered $19 a share in cash for Del Monte. The price represents a premium of 40% over the food company’s average closing share price during the past three months prior to 18 November.
The takeover was unanimously approved by Del Monte’s board and is valued at about $5.3bn, including $1.3bn of debt. The deal, which is subject to regulatory approvals, will be closed by the end of March 2011.
“This transaction delivers substantial shareholder value and is a clear endorsement of Del Monte’s strategic success and effective execution,” said Richard G Wolford, Del Monte’s chairman and chief executive. “The hard work and dedication of our talented team has helped to transform Del Monte from a $1bn consumer foods business into a branded pet and consumer products company with more than $3.7bn in revenues.”
Source: Guardian/Business Line
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