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Summary: Del Monte Corp. Aug 11
Standard & Poors, August 2011
The ratings on San Francisco, Calif.-based Del Monte Foods Co. reflect its high debt levels, participation in the highly competitive packaged produce and pet food market segments, exposure to volatile commodity costs, and limited customer and geographic diversification. We view the company's financial profile as highly leveraged because of its significant debt burden and its aggressive financial policy. On March 8, 2011, Del Monte was acquired by an investor group including Kohlberg Kravis Roberts & Co. L.P., Vestar Capital Partners, and Centerview Capital L.P. Credit metrics deteriorated substantially after the transaction. Standard & Poor's Ratings Services estimates lease and pension adjusted total debt to EBITDA (excluding transaction expenses) is high, at about 6.6x at fiscal year end May 1, 2011,...
Companies mentioned in this report are: Del Monte Corp.
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Del Monte Corp.