Chefs' Warehouse To Buy Del Monte Meat Co. For $191.2 Mln; Guides FY15

(RTTNews) - The Chefs' Warehouse, Inc. (CHEF) has agreed to acquire substantially all of the assets and certain equity interests of Del Monte Capitol Meat Co. and its affiliated companies for about $191.2 million including cash, stock and notes.

Founded in 1926, Del Monte supplies high quality, USDA inspected beef, pork, lamb, veal, poultry and seafood products to Northern California.

Del Monte is likely to generate nearly $200.0 million to $225.0 million in annualized net sales in 2015. The purchase price for the business is expected to be about $191.2 million, comprising $127.5 million in cash, 1.2 million common shares; and $38.3 million in convertible subordinated notes with a six-year maturity bearing interest at 2.5% with a conversion price of $29.70 per share.

Looking ahead, on a preliminary basis, the firm expects its full-year 2015 net income per share between $0.57 and $0.66, and net sales between $1.0 billion and $1.1 billion.