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Ford expands in China
SHANGHAI » Ford Motor is adding 100 new dealerships in China this year, raising its number of outlets to 340, as it courts new car buyers in provincial cities. The company is expecting 70 percent of its sales growth to come from the Asian-Pacific and African regions over the next decade. It inaugurated 40 dealerships yesterday out of 66 it will open before the end of the year. In 2010 it plans to have opened 100.
Equity group to buy Del Monte
NEW YORK » Del Monte Foods Co. — the pet foods maker, not the seller of pineapples — agreed yesterday to be bought for $4 billion in cash by a group of investors that includes its former owner in what would be the biggest private equity deal of the year.
An investor group led by Kohlberg Kravis Roberts & Co. — which briefly owned Del Monte — Vestar Capital Partners and Centerview Partners agreed to buy the food maker for $19 per share. They will also assume $1.3 billion in debt.
The purchase price is a 6 percent premium to the stock’s closing price on Wednesday, though the stock has soared recently on published reports about a possible buyout. The stock is up 59 percent since the beginning of the year, including a 12 percent jump on Nov. 18 when rumors of the deal surfaced.
Del Monte, based in San Francisco, is the owner of several well-known pet-food brands, including Kibbles ‘n Bits, Meow Mix and Milk-Bone. It also has food brands under the Del Monte, Contadina, College Inn and S&W names.
The private equity firms in the deal have a long history with food makers.
KKR has bought food and beverage companies such as Beatrice Cos., RJR Nabisco and Borden Foods. It acquired Del Monte as part of its $25.1 billion leveraged buyout of Nabisco in 1989, and then sold Del Monte soon afterward. And Centerview’s co-founder, Jim Kilts, is a former CEO of Kraft.
It is also the second pet-food deal of the year for KKR, which acquired British pet retailer Pets at Home in January.
For-profit colleges failing students
WASHINGTON » U.S. for-profit colleges are like subprime mortgage lenders, targeting low-income and minority students by "peddling access to the American dream but delivering little more than crippling debt," a report said.
Low-income students make up half of the enrollment at for-profit colleges, and minorities comprise 37 percent, the Washington-based Education Trust said, citing federal data. The nonprofit research and advocacy group, funded partly by the Bill & Melinda Gates Foundation and the Lumina Foundation for Education, said Apollo Group Inc. and other for-profit colleges have higher dropout rates and student-debt loads than traditional universities.
The report follows the proposal of regulations by President Barack Obama’s administration that would restrict the flow of taxpayer money to for-profit colleges, which get up to 90 percent of their revenue from federal grants and loans and received $26.5 billion last year in U.S. student aid.
HTA seeking festivals promoter
The Hawaii Tourism Authority is looking for a contractor to promote HTA-supported festivals to isle visitors and residents. The Festivals of Hawaii Post-Arrival Promotional Campaign, in place since 2006, "helps to promote and perpetuate Hawaii’s diversity and celebrate our state’s multicultural heritage, enhancing visitor experiences and residents’ quality of life," said Mike McCartney, HTA president and chief executive officer.
Information packets are available online at the HTA website at www.hawaiitourismauthority.org, in the HTA office at the Hawai’i Convention Center or by contacting the office at 973-2255. Written proposals are due at the HTA office no later than 4:30 p.m. next Friday.
Servco names vice president
Servco Auto-motive has named Kim Randall vice president of sales and marketing. She will lead an internal marketing team overseeing the company’s automotive advertising, promotions, events and public relations. Randall was previously a senior vice pres-ident/managing director for Communications Pacific in Honolulu as well as vice president for advertising and marketing services at Visa U.S.A. in San Francisco and vice president of Ketchum Advertising in Los Angeles.
VW commits to big upgrade
BERLIN » Volkswagen AG says it plans to invest 51.6 billion ($70 billion) over the next five years as it focuses on modernizing and extending its brands’ product range.
The company said today that it will put 41.3 billion of the money into property, plant and equipment for its automotive division — 57 percent of that in Germany, where it has its Wolfsburg headquarters.
Volkswagen says the group, which also includes brands such as Audi, Skoda and Seat, will focus on new and successor models "in almost all vehicle classes" and will launch new generations of engines.
It says it "will continue driving forward the development of hybrid and electric motors in particular."
