In what could amount to a $410 million acquisition, First Pacific has announced its intention to buy Del Monte Pacific. In the first phase of its acquisition it has agreed to buy 40% of the company from Cirio, an Italian food company that is now under receivership.
The 40% stake will cost $164 million - a 20% premium to Singapore-listed Del Monte Pacific's stock price. However, at an estimated 9.9 times 2005 EBITDA, the deal is considered fairly priced, and has been well received by analysts.
Del Monte Pacific's business activity is focused primarily on the Philippines, with 70% of its revenues coming from processed foods...
