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BURNS PHILP FINALIZES U.S. DURKEE PURCHASE

 BURNS PHILP FINALIZES U.S. DURKEE PURCHASE
 SYDNEY, Australia, Aug. 3 /PRNewswire/ -- Burns, Philp & Company


Limited of Australia has announced the closing of its purchase of the U.S. Durkee-French spice and seasoning businesses from Reckitt & Colman for approximately US$78 million (A$103 million). Pending finalization of accounts including inventory levels and sales volume, US$7 million will be held in escrow.
 Durkee-French is the second largest spice and seasoning producer in the United States with sales of approximately US$220 million (A$295 million). The total U.S. market for the retail spice market is estimated at US$1.2 billion.
 The acquisitions will join the Burns Philp Food & Fermentation Division headquartered in San Francisco, and will take advantage of existing distribution and sourcing arrangements in the Division.
 "We are very enthusiastic about the finalization of the Durkee purchase," commented Burns Philp Managing Director Andrew Turnbull. "The acquisition merges favorably with our existing consumer and food ingredients divisions in the United States. It's an important step in our on-going Food & Fermentation Division strategy."
 The Durkee-French retail labels will be sold by Specialty Brands (Spice Islands gourmet spices, Blue Ribbon spices, Dromedary dates and cake mixes, Fleischmann's Yeast), and Durkee-French's commercial ingredients will be sold by Burns Philp's Integrated Ingredients operation. Durkee-French will also benefit from Burns Philp's raw materials direct sourcing agreements.
 A higher level of sales of Durkee-French products to the Industrial Food and Food Service sectors is expected as Burns Philp, the largest manufacturer of yeast and vinegar in the world, has well-established industrial customers in the U.S. through its Integrated Ingredients operation. Integrated Ingredients operate autolyzed yeast, vinegar, flavors and pure alcohol plants throughout the U.S.
 Products included in the transaction are Durkee and French's spices and seasonings, sauces and gravies, Dec-A-Cake decorations, Durkee Famous Sauce and French's Lemon Pie Filling.
 Burns Philp will release its result for the twelve months to June 30, 1992 on Sept. 9, 1992.
 Burns Philp shares, listed on the Australian Stock Exchange, are traded in the U.S. in the form of American Depositary Receipts (ADRs). The ADRs are quoted on the National Association of Securities Dealers' Electronic Bulletin Board (Symbol: 3BPHCY), and are traded in the Pink Sheets. One ADR equals six Burns Philp shares.
 -0- 8/3/92
 /CONTACT: Susanne Larson, corporate communications manager of Burns, Philp & Company (Sydney), 61-2-259-1296; Frank Stevens, president of Consumer Foods, N. America (San Francisco), 415-296-5858; or Paul Whitelaw of Hill and Knowlton, Inc. (New York), 212-697-5600, for Burns Philip & Company/ CO: Burns Philp & Company Limited; Durkee-French ST: IN: FOD SU: TNM


SH -- NY059 -- 6213 08/03/92 13:42 EDT
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Publication:PR Newswire
Date:Aug 3, 1992
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