Del Monte Digests Milk-Bone

Del Monte Foods (DLM Quote) said Monday that it has completed its acquisition of brand Milk-Bone and other pet food products from Kraft Foods (KFT Quote) for $580 million.

The deal, previously announced in March, was financed through additional senior debt in the amount sufficient to fund the purchase price.

Del Monte CEO Rick Wolford said that the "transaction, coupled with our recent acquisition of Meow Mix, creates an improved platform for developing innovative and successful products, significantly improving Del Monte's competitive position in the pet food category."

Del Monte says it expects to see approximately $125 million of net present value tax benefits as a result of the acquisition.

The San Francisco-based company posted approximately $3 billion in net sales in fiscal 2006.

Shares of the company closed the regular session up 6 cents to $11.29.