Company involved in 2007 pet food recall sold for $239 million
Simmons, considered one the largest private label pet-food makers in the United States, will acquire the company's existing debt. The transaction is subject to unitholder approval, but Simmons expects the deal to close in the fourth quarter of 2010, according to recent reports.
Menu Foods Income Fund's units will be redeemed for $4.80 per unit in cash, which represents a 65.5 percent increase from the closing price of $2.90 on March 15, 2010, according to the company.
"With this transaction, we are adding one of North America's leading private label pet-food manufacturers to our portfolio and further strengthening our company," says Mark Simmons, chairman of Simmons Foods Inc. and affiliates. "Menu is a great company with an excellent management team and employees that are among the best in our industry, and we look forward to welcoming them into the Simmons family."
The 2007 pet-food recall left thousands of animals sick after ingesting melamine-contaminated ingredients. The recall also involved a reported 60 million cans and pouches of pet food.