Flagstar announces sale of final non-core subsidiary to Simeus Foods International.SPARTANBURG, S.C.--(BUSINESS WIRE)--Sept. 30, 1996--Flagstar Companies, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :FLST FLST Fail Last ) announced today it has completed the sale of its food processing subsidiary, Portion-Trol Foods, Inc., to Simeus Foods International for a total purchase price of $55 million. This transaction was financed by a group of venture capitalists led by Dallas-based MESBIC MESBIC Minority Enterprise Small Business Investment Company Ventures Holding Company. The investor group also includes Opportunity Capital and Connecticut-Greene Ventures. Dumas M. Simeus will serve as chairman and chief executive officer of the newly acquired business. Simeus has extensive managerial experience in the food processing industry and is the past president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of TLC TLC total lung capacity; thin-layer chromatography. TLC abbr. 1. thin-layer chromatography 2. Beatrice International Foods, a $2 billion multinational firm with operations in 25 countries. Based in Mansfield, Texas, Portion-Trol operates a food processing plant which prepares food products for Flagstar's Denny's, Hardee's, Quincy's Family Steakhouse and El Pollo Loco El Pollo Loco is a fast-food restaurant chain and Mexican grilled chicken franchise. "El Pollo Loco" is Spanish for "The Crazy Chicken". Juan Francisco Ochoa started the restaurant in Guasave, Mexico, in 1975. restaurants. Flagstar also has entered into a separate, long-term agreement for Portion-Trol to continue to supply these four restaurant chains with food products such as soups, meats and mozzarella moz·za·rel·la n. A mild white Italian cheese that has a rubbery texture and is often eaten melted, as on pizza. [Italian, diminutive of mozza, a cut, mozzarella, from mozzare, cheese sticks. "The divestiture of Portion-Trol completes the sale of all non-restaurant subsidiaries and sharpens our focus on operating and growing our restaurant businesses," said James B. Adamson, chairman and chief executive officer of Flagstar. "Additionally, cash proceeds from the sale will further enhance Flagstar's liquidity as we work to strengthen our profitability." As part of its business strategy to focus on restaurant operations, Flagstar has divested five other non-restaurant subsidiaries since 1994, including contract food and vending, recreational services, concessions and distribution operations. In May, the company purchased the Carrows and Coco's restaurant chains. Flagstar is one of the nation's largest restaurant companies with 3,200 moderately-priced restaurants and annual revenues of approximately $3 billion. Flagstar owns and operates Carrows, Coco's, Denny's, El Pollo Loco and Quincy's Family Steakhouse restaurants and is the largest franchisee of Hardee's restaurants. CONTACT: Flagstar Cos. Inc., Spartanburg Karen Randall (media), 864/597-8440 Larry Gosnell (investor contact), 864/597-8658 or MESBIC Donald R. Lawhorne, 214/991-1597 |
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