P.M. BRIEFING : Nabisco Agrees to Sell Del Monte
RJR Nabisco Inc. said today that a group formed by Merrill Lynch & Co. has agreed to buy its Del Monte food business for $1.475 billion cash.
The group also includes Del Monte senior management, Citicorp Capital Investors Ltd. and Kikkoman Corp. The latter, in addition to its equity investment, has agreed to purchase certain of Del Monte’s assets in Asia, RJR Nabisco said.
Financing for the transaction will be provided by the First National Bank of Chicago, Citibank, the Industrial Bank of Japan Ltd. and Caisse Nationale de Credit Agricole, RJR Nabisco said.
RJR Nabisco has sold off several of its food assets since it was acquired by Kohlberg Kravis Roberts & Co. in a record $24.9-billion leveraged buyout last year.
“The Del Monte transactions bring RJR Nabisco close to completion of our plan to reduce overall debt by $5.5 billion,” said Louis V. Gerstner Jr., chairman and chief executive officer of RJR Nabisco.
