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.