This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Private Equity Group to Buy Del Monte

SAN FRANCISCO ( TheStreet) -- Del Monte Foods (DLM) has agreed to be acquired for $4 billion in cash by a group of private equity investors including Kohlberg Kravis Roberts.

The purchasing group, which also includes Vestar Capital Partners and Centerview Partners, will pay $19.00 a share for the San Francisco-based food and pet products company. The buyers will also assume about $1.3 billion in debt.

The purchase price represents a 6% premium to Del Monte's closing share price of $17.99 on Wednesday.

However, the stock surged last Friday following speculation that Del Monte would be acquired, and Del Monte noted in a news release that the deal price represents a premium of about 40% over its average closing share price in the three months before Friday.

The Del Monte deal is the largest private equity acquisition of the year, ahead of Extended Stay, which in May agreed to a $3.92 billion buyout, the Associated Press reported.

In the news release, Del Monte said it would keep its headquarters in San Francisco following the deal.

Under the agreement, Del Monte may solicit alternative proposals from other potential buyers through Jan. 8, 2011, and the company said its board and advisers would actively do so. If the company does not find a better offer, the current deal should close by the end of March, according to the news release.

Del Monte also announced Thursday that it no longer planned to host a conference call to discuss its fiscal 2011 second-quarter results on Thursday, Dec. 2.

This article was written by a staff member of TheStreet.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $130.28 0.47%
FB $81.53 -1.07%
GOOG $565.06 3.30%
TSLA $218.42 -0.08%
YHOO $44.52 1.89%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs