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.
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.