Johnny was the best recording engineer compared to my skills. He shared his techniques at Hotel Utah. He ended up dying in the Ghost Ship fire with several of my music friends.
March 2011
Del Monte Foods Company (NYSE: DLM) today announced the completion of
its acquisition by an investor group led by funds affiliated with
Kohlberg Kravis Roberts & Co. L.P. (“KKR”), Vestar Capital Partners
(“Vestar”) and Centerview Capital, L.P. (“Centerview”) – collectively
the “Sponsors.” Under the terms of the merger agreement, the company’s
stockholders will receive $19.00 per share in cash. The total enterprise
value of the transaction is approximately $5.3 billion. Shareholders
voted to approve the transaction on March 7, 2011. The price per share
represents a 40 percent premium over the average closing price during
the three months prior to market rumors last fall.
Del Monte common stock will cease trading on the New York Stock
Exchange before the opening of the market on March 9, 2011. Under
private ownership, the company’s common stock will no longer be listed
on the New York Stock Exchange.
Richard G. Wolford, 66, the company’s Chairman of the Board,
President and Chief Executive Officer, who has successfully led the
company since 1997, retired from Del Monte in conjunction with the close
of the transaction.
Neil Harrison, 58, has been named interim CEO, effective immediately.
The Sponsors have commenced a search for Mr. Wolford’s successor. Mr.
Harrison, currently a Senior Advisor at Vestar, brings three decades of
experience in the global food industry and in branded consumer products
to Del Monte. Prior to joining Vestar, he was the Chairman and CEO of
Birds Eye Foods Inc., a former Vestar portfolio company. During his
tenure at Birds Eye, he led critical investments in marketing and
advertising, R&D and new product development, and drove significant
growth at the company. Mr. Harrison is also a former President and CEO
of Heinz North America and he has held executive positions at Miller
Brewing Company, PepsiCo, Inc., General Foods Corporation, and Unilever
PLC.
Larry Bodner, 48, Del Monte’s current Executive Vice President,
Finance, has been named Executive Vice President and Chief Financial
Officer of Del Monte Foods Company, effective immediately. He succeeds
David Meyers, 65, who resigned upon the close of the transaction. Mr.
Bodner, who joined Del Monte in 2003 and has served in senior finance
and investor roles throughout his tenure, is a consumer goods industry
finance veteran with more than twenty years of experience. Before
joining Del Monte, Mr. Bodner held various senior financial positions,
including at Procter & Gamble and The Walt Disney Company.
The acquisition was funded via a combination of new debt financing
and a significant equity contribution by the Sponsors. The debt
financing consisted of a new $2.7 billion term loan arranged by J.P.
Morgan Securities LLC, Barclays Capital, Morgan Stanley Senior Funding,
Inc., and Merrill Lynch, Pierce, Fenner & Smith Incorporated; $1.3
billion of new senior notes for which BofA Merrill Lynch, Morgan
Stanley, Barclays Capital, and J.P. Morgan were the initial purchasers;
and a new $750 million ABL Facility arranged by Merrill Lynch, Pierce,
Fenner & Smith Incorporated, J.P. Morgan Securities LLC, Barclays
Capital, and Morgan Stanley Senior Funding, Inc.
About Del Monte Foods
Del Monte Foods is one of the country’s largest and most well-known
producers, distributors and marketers of premium quality, branded pet
products and food products for the U.S. retail market, generating
approximately $3.7 billion in net sales in fiscal 2010. With a powerful
portfolio of brands, Del Monte products are found in eight out of ten
U.S. households. Pet food and pet snacks brands include Meow Mix(R),
Kibbles ‘n Bits(R), Milk-Bone(R), 9Lives(R),Pup-Peroni(R), Gravy
Train(R), Nature’s Recipe(R), Canine Carry Outs(R)and other brand names.
Food product brands include Del Monte(R), Contadina(R), S&W(R),
College Inn(R)and other brand names. The Company also produces and
distributes private label pet products and food products. For more
information on Del Monte Foods Company, please visit the Company’s
website at www.delmonte.com.
Del Monte. Nourishing Families. Enriching Lives. Every Day,TM
About KKR
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a
leading global investment firm with $61 .0 billion in assets under
management as of December 31,2010. With 14 offices around the world, KKR
manages assets through a variety of investment funds and accounts
covering multiple asset classes. KKR seeks to create value by bringing
operational expertise to its portfolio companies and through active
oversight and monitoring of its investments. KKR invests in high-quality
franchises across multiple industries, including current and previous
consumer and retail investments such as Sealy, Dollar General, Pets at
Home, Oriental Brewery, WILD, Duracell, Gillette, RJR Nabisco and
Safeway. KKR is publicly traded on the New York Stock Exchange (NYSE:
KKR). For additional information, please visit KKR’s website at
www.kkr.com.
About Vestar Capital Partners
Vestar is a leading international private equity firm specializing in
management buyouts and growth capital investments with $7 billion in
assets under management. The firm targets companies in the U.S. and
Europe in five key industry sectors: consumer, diversified industries,
healthcare, media/communication, and financial services. Current and
previous Vestar investments in consumer products companies include Birds
Eye Foods, Sun Products Corporation, Michael Foods, Remington Products
and Celestial Seasonings. Since the firm’s founding in 1988, the Vestar
funds have completed more than 67 investments in companies with a total
value of more than $30 billion. Vestar has operations in New York,
Boston, Denver, Munich, and Paris. For more information, please visit
Vestar’s website at www.vestarcapital.com.
About Centerview
Centerview’s private equity business is based in Rye, New York and is
focused exclusively on making investments in U.S. middle- and
upper-middle market consumer businesses. With approximately $500 million
in committed capital, the firm seeks to leverage its operational
expertise and deep consumer industry relationships in partnership with
existing owners and management to achieve strategic and operational
excellence. More information about the firm is available at
www.centerviewcapital.com
