Summary
This 8-K filing from Kraft Foods Inc. (prior to its rebranding as Mondelez International) on May 24, 2006, details a significant transaction involving the acquisition of real estate and related personal property from Altria Corporate Services, Inc. (ALCS). Kraft Foods, a subsidiary of Kraft Foods Inc., purchased specific real property in Wilkes Barre, Pennsylvania, for $9.3 million, along with associated personal property. Concurrently, Kraft assumed the lease obligations for real property in San Antonio, Texas, and purchased personal property located there for $6.0 million.
Key Highlights
- 1Kraft Foods Inc. acquired significant real estate and personal property from Altria Corporate Services, Inc.
- 2The Wilkes Barre, Pennsylvania property was purchased for $9.3 million.
- 3Kraft assumed lease obligations for real property in San Antonio, Texas.
- 4Personal property in San Antonio was acquired for $6.0 million.
- 5These transactions involve properties previously used by Kraft and reimbursed to ALCS.
- 6The filing includes the Purchase and Sale Agreement, Assignment and Assumption of Lease, and Bill of Sale as exhibits.
- 7The transactions were executed on May 24, 2006, and reported on May 24, 2006.
Frequently Asked Questions
The primary purpose of this 8-K filing is to report a material definitive agreement entered into by Kraft Foods Inc. (a subsidiary) to acquire certain real estate and personal property, as well as assume lease obligations for other real property, from Altria Corporate Services, Inc.
Kraft Foods acquired certain real estate and personal property in Wilkes Barre, Pennsylvania, for $9.3 million. They also assumed the lease for certain real property in San Antonio, Texas, and purchased personal property located there for $6.0 million.
These transactions appear to be a consolidation of operational assets. The filing states that the properties involved were being used by Kraft, and Kraft had been reimbursing ALCS for their use, suggesting a move to bring these assets under direct ownership or control.
The direct financial outlay reported is $9.3 million for the Wilkes Barre property and $6.0 million for the San Antonio personal property, totaling $15.3 million. The assumption of the San Antonio lease also represents a future financial commitment.