Kraft Completes United Biscuits' Iberian Operations Acquisition
The acquisition, announced July 10, 2006, was valued at $1,067 million, consisting of the assumption of $537 million of debt issued by the acquired business immediately prior to the acquisition.
08/09/06 Kraft Foods Inc. has completed its acquisition of United Biscuits' (UB) Iberian operations, as well as the recovery of the rights to key Nabisco trademarks in Europe, the Middle East and Africa, including Oreo, Ritz and Chips Ahoy!.
The acquisition, announced July 10, 2006, was valued at $1,067 million, consisting of the assumption of $537 million of debt issued by the acquired business immediately prior to the acquisition, as well as $530 million of value for the redemption of Kraft's outstanding investment in UB, primarily deep discount securities. This redemption generates a non-cash, pre-tax gain of $251 million or 10 cents per diluted share. The EPS impact, versus the previously disclosed 13 cents, reflects the finalization of income tax effects and currency movements.
"Bringing our Nabisco trademarks back into our product portfolio, coupled with the addition of strong local Iberian biscuit brands, is another step in increasing shareholder value as we further improve our growth potential in this key region," said Joachim Krawczyck, Group Vice President & President, Kraft EU region. "This transaction gives us an enhanced platform for innovation and extends Kraft's competitive position in the EU."
