8-KOther Events

ALTRIA GROUP, INC. 8-K Report (Dec 22, 2000)

Filed December 22, 2000For Securities:MO

Summary

This 8-K filing from Philip Morris Companies Inc. (now Altria Group, Inc.) reports the closing of its acquisition of Nabisco Holdings Corp. on December 11, 2000. The acquisition was completed through a merger where Nabisco became a wholly owned subsidiary of Kraft Foods, Inc., an indirect subsidiary of Philip Morris. This strategic move significantly expands Philip Morris's consumer products portfolio, particularly within the food and snack categories, with the addition of Nabisco's well-known brands like Oreo, Ritz, and Planters. The total cost of the acquisition amounted to $15.2 billion in cash, plus the assumption of approximately $4.0 billion in Nabisco's existing debt. Philip Morris financed this substantial transaction through a combination of $9.2 billion in short-term obligations, $3.0 billion from the issuance of Floating Rate Notes, and $3.0 billion from its available cash reserves. Investors should note that while this filing confirms the completion of the acquisition, detailed financial statements and pro forma information for the acquired business will be filed later by amendment.

Key Highlights

  • 1Philip Morris Companies Inc. (now Altria Group) completed the acquisition of Nabisco Holdings Corp. on December 11, 2000.
  • 2The acquisition was structured as a merger where Nabisco became a subsidiary of Kraft Foods, Inc., itself an indirect subsidiary of Philip Morris.
  • 3The total cash consideration for the acquisition was $15.2 billion, with an additional assumption of $4.0 billion in Nabisco's debt.
  • 4Financing for the acquisition included $9.2 billion from short-term obligations, $3.0 billion from Floating Rate Notes, and $3.0 billion in available cash.
  • 5The acquisition brings a portfolio of well-known Nabisco brands, including Oreo, Ritz, Chips Ahoy!, Planters, and Life Savers, into the Philip Morris corporate family.
  • 6Nabisco operates internationally, marketing products in the United States and over 85 other countries.
  • 7Detailed financial statements and pro forma information related to the acquisition will be provided in a subsequent filing.

Frequently Asked Questions

The main event is the completion of the acquisition of Nabisco Holdings Corp. by Philip Morris Companies Inc. (now Altria Group) on December 11, 2000. Nabisco was merged into a subsidiary of Kraft Foods, Inc., which is part of Philip Morris.

Philip Morris paid $15.2 billion in cash for Nabisco, plus assumed approximately $4.0 billion in Nabisco's existing debt. The cash portion was financed by $9.2 billion in short-term obligations, $3.0 billion from the issuance of Floating Rate Notes, and $3.0 billion from Philip Morris's available cash.

The acquisition included a range of popular Nabisco brands such as Oreo, Premium, Chips Ahoy!, Ritz crackers, A.1. steak sauces, Grey Poupon mustards, Life Savers, Trolli confections, Planters nuts and snacks, and Milk-Bone dog treats.

Yes, this filing indicates that detailed financial statements and pro forma financial information concerning the acquired business will be filed by amendment to this Current Report on Form 8-K at a later date.