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

by The Associated Press Nov 25th 2010 4:30PM
Updated Nov 25th 2010 4:33PM

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.


Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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20 Comments

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brennemanbelkin

Hope they don't mess with Milk Bones. They're delicious.

November 27 2010 at 11:12 AM Report abuse rate up rate down Reply
priority109

how much is mr pelosi getting from this ? article conveniently left out star kisT tuna---and CONTRARY TO THE SCATOLOGY on sNOpes etc HE OWNS THE PLANT IN AMERICA SAMOA---owns it.gooooooooooooooooogle it. FACT.

November 27 2010 at 5:09 AM Report abuse +1 rate up rate down Reply
1 reply to priority109's comment
xtrees130

TO: priority109 - Per the research I did - Starkist Tuna is presently owned by a South Korea conglomerate by the name of Dongwon. Del Monte sold StarKist to them in late 2008. Starkist Tuna was previously owned by H.J. Heinz who sold it to Del Monte in 2002.

November 27 2010 at 9:20 AM Report abuse rate up rate down Reply
rbrown1959

Thanks WI5383. And yes, the level of ignorance in America about economics truly is sad. The Chinese have turned to capitalism, while we slide into the Nanny State. Our educational system has truly failed in teaching people the most essential things they need to achieve a better life.

November 26 2010 at 10:11 PM Report abuse -1 rate up rate down Reply
rbrown1959

On second thought, and with further reflection, I'm asking all lefties to keep posting comments like these. What better way to exhibit the need for an Economics 101 requirement in High School. Maybe, just maybe, this country can still be saved.

November 26 2010 at 9:11 PM Report abuse rate up rate down Reply
1 reply to rbrown1959's comment
wl5383

rbrown1959, Great comment. Very sad that so many people dont understand basic economic principles.

November 26 2010 at 9:57 PM Report abuse +2 rate up rate down Reply
rbrown1959

The lack of basic knowledge about economics in these comments is astounding. No wonder this country is going down the tubes. First, KKR is a publicly traded company. Just punch in KKR in stock quotes and see it for yourself. Second, just because they will be partially owned by a private company doesn't exempt them from food safety regulation. If you want proof of that just take a look at Cargill. One of the largest food companies in the world and totally private. Look lefties, I understand you hate corporations and private enterprise of any sort, but find out what you're talking about before posting. Comments like this merely exhibit your ignorance and undermine your agenda. Geeeeezzzzzzz.......

November 26 2010 at 8:42 PM Report abuse +1 rate up rate down Reply
gardeningatnite

Many of the nation's biggest companies owned by private equity firms are facing mounting debt and even possible bankruptcy......But the investors are sitting well!!!........Then they dump the company!

November 26 2010 at 7:41 PM Report abuse +1 rate up rate down Reply
gardeningatnite

Private equity, or money invested in companies that are not part of the stock exchange, is a popular way for big investment firms to make money. Private equity firms are designed to take investors' money, invest it in a company, improve the company and make more money off of it.........Kinda like a Ponzi scheme!

November 26 2010 at 7:39 PM Report abuse +3 rate up rate down Reply
savemycountry911

Just say no to Socialism.

November 26 2010 at 7:39 PM Report abuse rate up rate down Reply
gardeningatnite

In the past the performance of private equity funds has been relatively difficult to track, as private equity firms are under no obligation to publicly reveal the returns that they have achieved from their investments. Private equity funds invest in privately held, owner-operated companies looking to grow and are not listed on the public market, resulting in limited information to the public.........A food company not held publically responsible??........ This is CRAZY!

November 26 2010 at 7:19 PM Report abuse -4 rate up rate down Reply
Hello Mom

I may be wrong but doesn't Nancy Pelosis' husband own a big chunk of Delmonte? I remember a controversy with her leading a successful campaign to not allow the increase in minimum wage to workers in American Samoa. These workers all work for DelMonte. Nice to be a business owner and go to bed with people in high places. Disgusting!

November 26 2010 at 3:47 PM Report abuse +10 rate up rate down Reply
6 replies to Hello Mom's comment