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Archive for Saturday, May 20, 2006

Del Monte closes Meow Mix purchase

May 20, 2006

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Del Monte Foods Co. said Friday it completed its purchase of cat food producer Meow Mix Holdings Inc.

The transaction is valued at $705 million, including $23 million in tax benefits Del Monte expects to realize from the deal. Privately held Meow Mix had $250 million revenue in fiscal 2005.

Del Monte has a production plant at 727 N. Iowa in Lawrence, where it makes Kibbles 'n Bits dog food.

Del Monte also plans to buy the Milk-Bone dog treat brand from Kraft as part of the company's "Project Brand" program to increase product offerings in higher-margin categories. That transaction is expected to close in July.

Del Monte shares dropped 4 cents to close Friday at $11.62 on the New York Stock Exchange.

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