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KKR, Vestar Capital and Centerview Partners to Acquire Del Monte Foods for $5.3 Billion
As reported in The Wall Street Journal, The New York Times "Dealbook," Am Law Daily and Legal Week, on November 25 Del Monte Foods Company (NYSE: DLM) and an investor group led by funds affiliated with Kohlberg Kravis Roberts & Co. L.P., Vestar Capital Partners and Paul, Weiss client Centerview Capital Partners (collectively, the "sponsors") announced the execution of a definitive agreement pursuant to which the sponsors will acquire Del Monte for $19.00 per share in cash.
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 November 18, 2010, when market rumors of a transaction surfaced. The price is also higher than any the company's stock has ever achieved.
The Paul, Weiss team advising Centerview includes corporate partners Jeffrey D. Marell and Marilyn Sobel; tax partner David W. Mayo; and employee benefits partner Robert C. Fleder and counsel Maureen A. Riley.