Del Monte Bought Out By Private Equity (DLM, KKR)

Del Monte Foods DLM has agreed to be bought out by a consortium of private equity firms led by Kohlberg Kravis Roberts & Co. KKR. Vestar Capital Partners and Centerview Partners will also be participating in the deal which values the company at $19 per share. Under the terms of the transaction, Del Monte will be able to solicit better offers until January 8, 2011. If no better deal is found, the transaction is expected to close by the end of March. "This transaction will enable our Company to continue to successfully grow, building on the foundation our team has put into place," Richard Wolford, chief executive of Del Monte Foods, said in a statement. Simon Brown, a member of KKR's consumer group said, "Del Monte has a first-rate brand portfolio and excellent reputation for providing high quality and nutritious products to families and their pets." During Friday's trading session, DLM shares have risen 4.39% to $18.78.