Kraft acquires United Biscuits' Iberian operations, recovers Nabisco trademarks

Kraft Foods Inc. completed its acquisition of United Biscuits' (UB) Iberian operations, as well as the recovery of the rights to key Nabisco trademarks in Europe, the Middle East and Africa, including Oreo, Ritz and Chips Ahoy!.

"Bringing our Nabisco trademarks back into our product portfolio, coupled with the addition of strong local Iberian biscuit brands, is another step in increasing shareholder value as we further improve our growth potential in this key region," said Joachim Krawczyck, group vice president and president, Kraft EU region. "This transaction gives us an enhanced platform for innovation and extends Kraft's competitive position in the EU."

The acquisition, announced July 10, 2006, was valued at $1.1 billion, consisting of the assumption of $537 million of debt issued by the acquired business immediately prior to the acquisition, as well as $530 million of value for the redemption of Kraft's outstanding investment in UB, primarily deep discount securities. This redemption generates a non-cash, pre-tax gain of $251 million, or 10 cents per diluted share. The EPS impact, versus the previously disclosed 13 cents, reflects the finalization of income tax effects and currency movements.

More News:

All news »

What are your comments?

You cannot post comments until you have logged in. Login Here.

Comments

No one has commented on this page yet.

RSS feed for comments on this page | RSS feed for all comments