Investor group to acquire Del Monte Foods
November 29, 2010
SAN FRANCISCO — Kohlberg Kravis Roberts & Co., Vestar Capital Partners and Centerview Partners have entered an agreement to acquire Del Monte Foods Co. for $19 per share in cash. Overall, the transaction is valued at $5.3 billion, which is a premium of 40% over the company’s average closing share price during the three months before acquisition rumors began on Nov. 18.
“This transaction delivers substantial shareholder value and is a clear endorsement of Del Monte’s strategic success and effective execution,” said Richard G. Wolford, chairman and chief executive officer of Del Monte Foods. “The hard work and dedication of our talented team has helped to transform Del Monte from a $1 billion consumer foods business into a branded pet and consumer products company with more than $3.7 billion in revenues. This transaction will enable our company to continue to successfully grow, building on the foundation our team has put into place. We are excited about the ability to deliver substantial returns to our shareholders, as well as great prospects for Del Monte employees, customers and consumers.”
Simon Brown, member of Kohlberg Kravis Roberts & Co., added, “Del Monte has a first-rate brand portfolio and excellent reputation for providing high quality and nutritious products to families and their pets. We look forward to working with the company’s talented employees and investing in the business as we continue to executive upon Del Monte’s proven strategy for growth. Del Monte is a great company with an excellent strategy, a talented team and a strong future.”
The transaction is expected to close by the end of March 2011, and Del Monte will maintain a corporate presence in both San Francisco and Pittsburgh.