Asia Bizz: KKR Group To Purchase Del Monte For $4 Billion
Kohlberg Kravis Roberts & Co or KKR Group is set to purchase Del Monte Foods at a price of $4 Billion, which excludes the current debt the company holds. The company is expected to be paid $19 per share of Del Monte, which is 5.6% premium to the closing price of $17.99 on Tuesday trading session. The purchase has become the latest news in the corporate world today.
Del Monte on the other hand is under going through a very harsh financial period this year, and its stocks have surged by more than 60% during the current fiscal year. Vestar Capital Partners along with a fund group of James Kilts is scheduled to join KKR for the acquisition.
These three new partners of Del Monte will be assuming around $1.3 billion debt which the company currently holds, as the total debt amounts to almost $5.3 billion. Del Monte now can expect stronger offers to come towards them for the purchase of the company, and the date lasts till January 8 2011.