Del Monte (DLM) Agrees to $4 Billion Private Equity Takeover
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On Thursday afternoon, Del Monte Foods Company (NYSE: DLM) agreed to be acquired by private Kohlberg Kravis Roberts & Co. L.P. (NYSE: KKR), Vestar Capital Partners and Centerview Partners for $19.00 per share in cash, or $4 billion excluding $1.3 billion in debt that was assumed.
The transaction comes at a 5.6 percent premium to Friday's close of $17.99. However, the deal represents a premium of approximately 40 percent over Del Monte's average closing share price during the past three months prior to November 18, 2010, when market rumors of a transaction began.
The agreement permits Del Monte to solicit alternative proposals from third parties through January 8, 2011.
If there is not a superior offer, the transaction is expected to close by the end of March 2011.
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The transaction comes at a 5.6 percent premium to Friday's close of $17.99. However, the deal represents a premium of approximately 40 percent over Del Monte's average closing share price during the past three months prior to November 18, 2010, when market rumors of a transaction began.
The agreement permits Del Monte to solicit alternative proposals from third parties through January 8, 2011.
If there is not a superior offer, the transaction is expected to close by the end of March 2011.
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