Del Monte in Buyout
Del Monte, the well known producer of canned foods for both humans and pets, has been struggling in the tough economic times. They have been forced to lay off workers and they have gone as far as to shut down several large plants in order to cut costs. However, the food maker has decided to throw in the towel. For the past three years they have been quietly shopping for a buyer and now they have a firm offer on the table.
KKR, a private investment firm, has offered Del Monte a total of $4 billion. That figure was higher yesterday, near $5 billion, but that did not factor in the total number of shares that will be purchased by the investment group. They plan to pay $19 per share for the total package price of the Del Monte group.
KKR is a massive firm that has been dipping their fingers into a lot of pots here recently. They were recently featured in the news for collectively bargaining with several other investors to take an offer to Yahoo. As yet the group has not approached the internet property with a firm offer.
The move to purchase Del Monte is being viewed as highly intelligent. Consumer goods has been a tremendous market for many investors and with the economic recovery process moving forward, the investment companies are set to make a bundle with the shared stock prices of the consumer goods companies.
Del Monte has until the deal closes, next month, to find a better offer from a competitor.
