Kraft Inks Iberian Purchase Pact
Kraft (KFT) plans to acquire the Spanish and Portuguese operations of United Biscuits, and at the same time the company will regain the rights to all Nabisco trademarks, including Oreo and Ritz, in the European Union, Eastern Europe, the Middle East and Africa.
In addition to the Nabisco trademarks, the United Biscuits operations being acquired include several local biscuit brands, such as Fontaneda, Filipinos, Artiach, Chiquilin and Triunfo, as well as the dry-dessert business Royal.
The deal also includes United's Iberian canned meat, tomato and fruit juice businesses that are sold under the brand names Apis and Fruco, seven manufacturing facilities and 1,300 employees. Together, the businesses generated net revenue of around $400 million last year.
Kraft said the acquisition is valued at $1.07 billion, subject to certain adjustments. The purchase will be financed by the assumption of roughly $548 million of debt being issued by the acquired business and $522 million for Kraft's redemption of its investment in United Biscuits.The redemption will result in Kraft recording a noncash, pretax gain of about $243 million. Excluding the impact of the one-time gain, the deal should add about 2 cents a share to Kraft's earnings during the first 12 months. After it closes the transaction, Kraft won't have any interest in United Biscuits or any of its affiliates. Altria (MO) is Kraft's parent company, but it's spinning off its stake in the food concern. Kraft, whose brands include Maxwell House and Oscar Mayer, is in the midst of a major restructuring plan aimed at reducing expenses and streamlining its brands.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV