Sale of Del Monte Foods Co. for $4 billion in cash is one of the largest U.S. private equity deals of 2010
San Francisco, Calif.-based Del Monte Foods Co. is being bought by an investor group led by Kohlberg Kravis Roberts & Co. L.P., Vestar Capital Partners and Centerview Partners for $4 billion. The agreement is one of the largest U.S. private equity deals of the year.
Under the terms of the buyout the private equity group agreed to buy Del Monte for $19 per share in cash, and assume roughly $1.3 billion in debt.
“This transaction delivers substantial shareholder value and is a clear endorsement of Del Monte’s strategic success and effective execution. 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,” says Del Monte chairman and CEO Richard Wolford. “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.”
Del Monte produces premium-quality pet food, as well as branded food products under the Del Monte, S&W, Contadina and College Inn labels. Net sales for 2010 were more than $3.7 billion.