Del Monte agrees to $4B buyout
A KKR-led private-equity group will pay cash for the food processor.
The purchasing group, which also includes Vestar Capital Partners and Centerview Partners, will pay $19 a share for the San Francisco-based food and pet products company. The buyers will also assume about $1.3 billion in debt.
The purchase price represents a 6% premium to Del Monte's closing share price of $17.99 on Wednesday.
The stock surged Friday amid speculation that Del Monte would be acquired. Del Monte said the deal price represents a premium of about 40% over its average closing share price in the three months before Friday.
The deal is the largest private-equity acquisition of the year, ahead of Extended Stay, which in May agreed to a $3.92 billion buyout, The Associated Press reported.
Del Monte said it will keep its headquarters in San Francisco after the deal.
Under the agreement, Del Monte may solicit alternative proposals from other potential buyers through Jan. 8. The company said its board and advisers will seek other offers. If the company doesn't find a better bid, the KKR-led deal will probably close by the end of March, according to the news release.
THis is a stock/business board...I thought you were talking about Bonds when you wrote coupons.
But since you are ...here is a simple explanation. THe chains have pressed and threatened the suppliers for many years, competing with them with store brands. Are you aware stores actually charge the suppliers to put products on the shelves...then demand advertising contributions from them (Slotting allowances, etc) All this with constant demand for lower wholesale prices. WalMart is Notorious for this playing the companies off each other. So by the time that is all finished there is very little left, you don't see TV ads for most consumer products and foods anymore--maybe a coule weeks a year if they are lucky, most get no support at all. What you used to get in a coupon is now already in the price, and coupons are quite expensive--the cost of distributing them, then the actual discoun, plus what stores get paid (read the print on the coupon) for redeeming them, then what the clearing house (like a bank for coupons) gets..add on misredemptions and fraudulent redemption and you begin ogetthe picture. All in a format that only a small percentage of consumers even use...and man of them are coupon only buyers, the idea of a coupon/rebae/etc is to get you to try the product...then to buy again without that. Coupons are dying and will be relegated to the trading stamp/free dishes/etc scrapheap of history. That dollar you got off cost the producer 3-4X that. And on commodity type purchases it is useless from a profit perspective...yes companies exist to make a profit
Well Kyill ...
I would think that you would want to give your family fresh fruit and vedgie intead of the canned wich as so many additives....
Just a thought..
Are we being sold out! Maybe I'm wrong, but it seems to me at the rate were going in this great country, almost everything will be owned by 20 or 30 mega corporations and equity groups in like 10-15 years or so. It's frightening! It also seems like most of them will be based in other countries. How long before the USA becomes a third world country?
As I was reading your comments I couldn't believe what I was reading. Basically I couldn't believe it because IT ISN'T TRUE!
Where do you get your info from... let me guess FOX?
I'd try and explain but I don't think it'll do any good.
First off why don't you learn how to spell on at least a third grade level before you make stupid comments. Secondly there is nothing wrong with making some spaghetti at home with canned sauce once in a while. Before you judge me on what i feed my family( which i do use plenty of salads and fruit at home from the local farmers market )take a good hard look in the mirror , you might just be suprised what you see!As far as DM leaving the country the article doesn't really give many specifics and is rather short and vague to make any real conclusions as to what the final outcome of the co. will be.But if i had ti guess it sounds like another american co. going elsewhere to save a buck .I'm sure a good old dose of greed , poor mangement , bad economy, bean counters and other financial factors had something to do with it.
What you used to get in a coupon is now already in the price, and coupons are quite expensive--the cost of distributing them, then the actual discoun, plus what stores get paid.../RichNYC
As a former retailer you are only partially right. As to what the stores get paid -8c- is peanuts when it comes to the HOOPS you have to go through to redeem them. Especially if the employee is earning $$/hr. Plus, you have to compile records to show the actual inventory orders and keep them handy for a year+.
Coupons will always be around as its the ONLY way to get non customers to try your product a first time, or reward a faithful customer.
Retailers get bonuses for letting a supplier have the ideal shelf space: EYE LEVEL and without competitors.
All in all, its to make up for the loss of income in a tighter retail market.
I never worried about competitors and their pricing. I got customers with SERVICE and finding DEALS to suit their interests.
If you can not give your consumers a better deal then why waste peoples time for pennies off.../ unFLY
There are deals out there. Its a matter of doing some groundwork on your part. I found a grocery store mgr willing to give me a 25% discount if I bought case lots of my favorite canned HEALTHY food: Allen Canned Kale.
Another store will get me CASE LOTS when its on sale for half price.
Then there are wholesale distributors that will bend the rules in your area.
I agree with ya OGRE Alex..
whats with coupons these day the make ya have to buy say cat food buy 24 cans and save a 1.00
They cat food is 89 cents.
talk about greedy.
If you can not give your consumers a better deal then why waiste peoples time for pennies off when it should be dollars off.
Companies could aford it in the 70s why so greedy today....
I see yep as usual its all about unions and healthcare....
I gave up on DM mostly because their coupons required multiple purchases to get an amount off that made it not worth bothering with.
If I want quality, I prefer S&W!
i get the del monte meat tomato sauce at the dollar store in 20 some ounce cans and it is a great all natural product.even my picky wife likes it.i buy a box of columbia durham wheat spaghetti and feed the family for 2 bucks.if i get real ambitious i go to dominicks to the bargain meat section and get some tyson turkey and pork meat balls for an extra buck.
Isn't this wonderful? With this buyout, regardless of whether or not it is economic, we have just written a check ( huge profit) to none other than Nancy Pelosi. That lovely speaker of the house who has single handedly, ruined our economy and possibly our economic system. This all done in self dealing from the capitol building.
Henry, is a very wise investor and always buys value, However, the unintended consequences are to enrich one of the wealthiest women in the U.S. This woman made sure that her investment was a success by issuing programs for the benifit of Del Monte in American Samoa. Nice, huh? A woman who is one of the most arrogant, vicious people in America, second only to George Soros. She has sought to impose her will on the American people whether they want it or not.
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