ACH Food Companies, Inc. Announces Acquisition of Tone Brothers, Inc.

MEMPHIS, Tenn. -- Associated British Foods plc, the international food, ingredient and retail group and parent company of ACH Food Companies, Inc. (ACH), has announced the acquisition of the international yeast, bakery ingredients and US herbs and spices businesses from Australia's Burns Philp group. The completion of the transaction is subject to regulatory approval and expected to be completed by late summer. This acquisition includes the Tone Brothers, Inc. division, which reported more than $220 million in revenues in 2003. Headquartered in Ankeny, Iowa it operates the largest spice production facility in the world and is the second leading spice provider in the United States.

This acquisition will add spices, seasonings and condiments to the ACH consumer and food service products lines, including several well-established brands such as Spice Islands, Durkee, French's, Tone's, Trader's Choice, and Dec-A-Cake. Also included in the sale is a range of retail and foodservice private-label products currently produced and distributed by Tone Brothers, Inc.

"This acquisition provides ACH a platform for expansion into the growing spices and seasonings categories. We will invest to grow these businesses while also leveraging ACH's strengths in the Consumer Products and Foodservices channels," said Dan Antonelli, president of ACH Food Companies. "The Tones Brothers business is strategically aligned with our larger goal of establishing ACH as a lead supplier of cooking ingredients and flavor enhancements."

With plants across the United States, ACH Food Companies, Inc. markets a broad range of products to the consumer and commercial food channels. ACH products include Mazola Corn Oil, Capullo Canola Oil, Karo Corn Syrup and Argo Corn Starch brands, specialty shortenings and oil-based products, non-dairy spray dried products and cheeses and spray dried savory ingredients. ACH is a subsidiary of London-based Associated British Foods, plc (ABF), an international food, ingredients and retail group.