MCCORMICK SALE FINALIZED TODAY
ATCHISON, Kan., Dec. 31 /PRNewswire/ -- Midwest Grain Products, Inc. (NASDAQ-NMS: MWGP) completed the sale of McCormick Distilling Company assets for an undisclosed price today to MDC Acquisition Company, an independent business formed by a group of private investors. While the transaction will produce a financial gain, Midwest anticipates it will be slightly more than offset by adjustments resulting from the adoption of two new accounting pronouncements, according to Ladd Seaberg, president and CEO. Management and the board of directors determined that the company would adopt newly issued accounting standards related to post-retirement benefit obligations and income taxes during the current fiscal year. "We are very pleased with the outcome of the transaction, especially since MDC has satisfied our requirement that McCormick continue to be operated at its present site with existing personnel," Seaberg said. "Although Midwest no longer has an investment in McCormick or its management, we look forward to establishing a long supplier-customer relationship with the company." McCormick employs 70 workers and is located in Weston, Mo., just north of Kansas City. Its beginnings date back to 1856, when Benjamin J. Holladay, founder of the Overland Stage Line, erected a distillery to produce whiskey using water from the property's natural limestone springs. The distillery remained in the Holladay family until 1895, when it was sold to George Shawhan. After Prohibition, it was purchased by Isadore Singer, who also bought the McCormick label which had been used for a whiskey marketed at nearby Waldron, Mo. Acquired by Midwest Grain in 1950, the 40-acre McCormick operation was initially used for warehousing beverage spirits produced in Atchison. Over the next three decades, McCormick functioned primarily as a regional distillery, serving customers n Missouri, Kansas and neighboring states. Today it is a national supplier of beverage and industrial alcohol products in small container sizes. Beverage spirits sold under McCormick brand label include vodka, gin, bourbon, Scotch, tequila, brandy, peach-flavored vodka, rum, triple sec and Canadian whisky. Numerous other premium and secondary brand products are also bottled and marketed, including B.J. Holladay Bourbon, Hussong's Agave Tequila, Stillbrook Bourbon and Stillbrook Blended Whiskey, Viaka Vodka, Ron Rio Rum, Rio Grande Tequila and Cambridge Gin. McCormick is additionally noted for the hundreds of different decanters it produced between the late 1960s and the late 1980s, including a highly popular Elvis Presley decanter series. The principal organizers of the MDC Acquisition Company have substantial experience in the beverage alcohol industry. They are not members of Midwest's management or the newly formed company's management. The decision to sell McCormick conforms with Midwest Grain's plans to focus on its base business of producing and marketing bulk alcohol and food products and related by-products. -0- 12/31/92 R /CONTACT: Steve Pickman of Midwest Grain Products, 913-367-1480/ (MWGP)
CO: Midwest Midwest or Middle West, region of the United States centered on the western Great Lakes and the upper-middle Mississippi valley. It is a somewhat imprecise term that has been applied to the northern section of the land between the Appalachians Grain Products, Inc.; McCormick Distilling Company McCormick Distilling Company is a Tennessee whiskey distillery in Weston, Missouri founded by Ben Holladay in 1856 that claims to be the oldest distillery operating in the same location. ;
MDC Acquisition Company ST: Kansas, Missouri IN: FOD SU:
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