Del Monte Foods Acquired Milk-Bone
The acquisition, announced March 16, 2006, was financed through additional senior debt in the amount sufficient to fund the purchase price.
13/07/06 Del Monte Foods Company today announced that Del Monte Corporation, its wholly owned subsidiary, has completed its previously announced acquisition of certain pet product assets, including the Milk-Bone brand ("Milk-Bone"), for approximately $580 million from Kraft Foods Inc.
"The addition of Milk-Bone, with its strong brand position in the fast-growing pet snacks category, is another step in the implementation of Project Brand, our strategy for increasing shareholder value as we improve the overall margin and growth potential for the entire Company," said Rick Wolford, Del Monte's Chairman and Chief Executive Officer. "This transaction, coupled with our recent acquisition of Meow Mix, creates an improved platform for developing innovative and successful products, significantly improving Del Monte's competitive position in the pet food category."
The acquisition, announced March 16, 2006, was financed through additional senior debt in the amount sufficient to fund the purchase price. The Company expects to realize approximately $125 million of net present value tax benefits associated with the amortization of intangible assets as a result of the acquisition.
