Del Monte Acquired for $5.3 Billion

Del Monte Foods Company and an investor group led by funds affiliated with Kohlberg Kravis Roberts & Co. L.P. (KKR), Vestar Capital Partners (Vestar) and Centerview Partners (Centerview) - collectively the Sponsors- announces that they have signed a definitive agreement under which the Sponsors will acquire Del Monte for $19.00 per share in cash.

 

"This transaction delivers substantial shareholder value and is a clear endorsement of Del Monte's strategic success and effective execution. The hard work and dedication of our talented team has helped to transform Del Monte from a $1 billion consumer foods business into a branded pet and consumer products company with more than $3.7 billion in revenues," says Richard G. Wolford, chairman and CEO of Del Monte Foods. "This transaction will enable our company to continue to successfully grow, building on the foundation our team has put into place. We are excited about the ability to deliver substantial returns to our shareholders, as well as great prospects for Del Monte employees, customers and consumers."

 

The transaction, which was unanimously approved by Del Monte's board of directors, is valued at approximately $5.3 billion, including the assumption of approximately $1.3 billion in net debt. This price represents a premium of approximately 40 percent over Del Monte's average closing share price during the past three months prior to Nov. 18, 2010, when market rumors of a transaction began, and is also higher than any price the company's stock has ever achieved.