Private-Equity Investors to Buy Del Monte for $4 Billion


Del Monte Foods (DLM) has agreed to be bought for $4 billion in cash in one of the biggest private equity deals of the year.

An investor group led by Kohlberg Kravis Roberts, Vestar Capital Partners and Centerview Partners agreed to buy the food maker for $19 per share. They will also assume $1.3 billion in debt.

That is a 6% premium to the stock's closing price on Wednesday, though the stock has soared recently on published reports about a possible buyout.

After a lull during the recession, more private equity deals are springing up. Extended Stay, NBTY (NTY), Interactive Data and Burger King Holdings (BKC) all agreed to be taken private this year.

Del Monte brands include food products under the Del Monte, Contadina and S&W brands and pet foods including Kibbles 'n Bits and Milk-Bone.

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