Archive for Saturday, May 20, 2006

Del Monte closes Meow Mix purchase

May 20, 2006


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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