Private Equity Takes Down Del Monte

[Jordan]

NEW YORK (AP) -- Del Monte Foods Co. on Thursday agreed to be bought for $4 billion in cash by a group of investors that includes its former owner in what would be the biggest private equity deal of the year.

An investor group led by Kohlberg Kravis Roberts & Co. -- which briefly owned Del Monte -- 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.

The purchase price is a 6 percent premium to the stock's closing price on Wednesday, though the stock has soared recently on published reports about a possible buyout. The stock is up 59 percent since the beginning of the year, including a 12 percent jump on Nov. 18 when rumors of the deal surfaced.

http://finance.yahoo.com/news/Private-equity-group-to-buy-apf-1236442373.html?x=0&sec=topStories&pos=7&asset=&ccode=

Another all cash deal.

[amy31416]

There was a big scandal (relatively speaking) about them taking over Nabisco quite a few years ago--more corrupt control of the food supply?

[Jordan]

There was a big scandal (relatively speaking) about them taking over Nabisco quite a few years ago--more corrupt control of the food supply?

I'm just in it for the business. :p Food comes secondary.

Private equity firms have a lot of money sitting on the sidelines and this was a pretty big buyout.

[LibForestPaul]

There was a big scandal (relatively speaking) about them taking over Nabisco quite a few years ago--more corrupt control of the food supply?

Kraft is becoming huge...especially Kraft Holdings; international subsidiary. Every day another product from Europe is under Kraft Umbrella.