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FLEMING PLANS SALE OF NEW JERSEY OPERATIONS

 OKLAHOMA CITY, Jan. 3 /PRNewswire/ -- Fleming Companies (NYSE: FLM) announced today that it has signed a letter of intent to sell substantially all of the assets of its Royal Foods dairy and deli products distribution business located in Woodbridge, N.J., to Di Giorgio Corporation. While terms of the sale were not disclosed, Fleming expects to record a pre-tax gain of approximately $6 million on the disposition.
 The company's Royal Foods distribution center located in Maryland is not part of the proposed sale and will continue to supply the customers of Fleming's Philadelphia division with perishable food products. Fleming indicated that the revenue from its New Jersey operations to be sold was approximately $300 million in 1993 and that Fleming's future financial results would improve slightly as a result of the transaction.
 Robert E. Stauth, Fleming's president and chief executive officer, said, "The proposed sale of the New Jersey operations is consistent with our strategy of divesting underperforming business units. We firmly believe that this transaction is in the best interests of Fleming and its shareholders."
 The proposed sale is subject to negotiation and execution of a definitive agreement, receipt of certain third party consents, and the approval of certain regulatory agencies and the boards of both companies.
 Through its White Rose food operation, Di Giorgio is one of the largest independent food distributors in the New York metropolitan area. Fleming markets food, food-related products and services through more than 2,900 supermarkets in 36 states.
 -0- 1/3/94
 /CONTACT: Ron Frost or Brenda Hays, both of Fleming Companies, Inc., 405-840-7200/
 (FLM)


CO: Fleming Companies, Inc., Di Giorgio Corporation ST: Oklahoma; New Jersey IN: FOD SU:

TM -- NY063 -- 8651 01/03/94 17:26 EST
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Publication:PR Newswire
Date:Jan 3, 1994
Words:286
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