KKR plans to buy Del Monte

Nov. 26, 2010 at 5:48 PM

NEW YORK, Nov. 26 (UPI) -- Del Monte Foods announced Friday it has agreed to go private, being bought by an investor group for $19 a share and assumption of $1.3 billion in debt.

The group is headed by Kohlberg Kravis Roberts & Co. and includes Vestar Capital Partners and Centerview Partners, The Wall Street Journal reported.

Del Monte, a manufacturer of pet food and canned fruits and vegetables with headquarters in San Francisco, said it can consider rival offers through Jan. 8. If no other buyers come forward, the $5.3 billion deal is expected to close by the end of March.

Shares in the company rose 4 percent Friday to $18.75, CNN said.

"This transaction will enable our company to continue to successfully grow, building on the foundation our team has put into place," Del Monte Chief Executive Officer Richard Wolford said in a statement.

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Latest Headlines
Top Stories
Google apologizes for photo app that tagged black couple as 'gorillas'
E-2D aerial refueling capability passes CDR
Shell to tap new Gulf of Mexico oil
Lockheed Martin spotlights new tracking pod system
Greek default leaves bruise on oil markets