Private equity behemoth Kohlberg Kravis Roberts & Co. is in talks to acquire pet- and human-food purveyor Del Monte Foods, according to a report by Bloomberg.
A transaction would give KKR a pet-food business whose sales have more than doubled since 2006, helped by the acquisitions of labels like Meow Mix cat-food and Milk Bone dog treats. Revenue in the division rose to $1.75 billion in the year ended May 2, accounting for about half of sales.
Some analysts are noting that Del Monte’s food-for-people business has recently lagged its food-for-animals operations, and that KKR may be considering a breakup of the company. Bloomberg also notes the Nov. 5 purchase of canned-tuna giant Bumble Bee Foods by Lion Capital. Looks like activity’s heating up in the packaged-food sphere.
mtaylor [at] observer.com | @mbrookstaylor