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SPARTA FOODS ACQUIRES CRUZ DISTRIBUTING

 SPARTA FOODS ACQUIRES CRUZ DISTRIBUTING
 ST. PAUL, Minn., Jan. 6 /PRNewswire/ -- Sparta Foods, Inc. announced


today that it has acquired Cruz Distributing, Inc., of South St. Paul, Minn., for 571,428 shares of Sparta's common stock. Cruz, with sales of approximately $3,000,000 in 1991, distributes tortillas to food service establishments, and tortillas and other Mexican-style products under the "Cruz" and "San Pablo" labels to retail grocery stores. In addition to receiving stock of Sparta, the former shareholders of Cruz received an aggregate of $223,500 in exchange for entering into non-competitive agreements, and will be entitled for five years to receive a fee equal to 1 percent of net sales of retail products under the "Cruz" or "San Pablo" labels.
 Nicholas Grammas, President of Sparta Foods, stated, "Sparta will continue to aggressively market the "Cruz" and "San Pablo" brand products through its new subsidiary, Cruz Mexican Foods, Inc., using Cruz's established distribution channels." Fifteen Cruz refrigerated products are now being distributed in 20 states. "The acquisition of Cruz should be of significant benefit to the future growth and success of Sparta," Grammas continued. "In addition to the potential sales of the new "Cruz" and "San Pablo" products, Sparta will add two of Cruz's management personnel to its staff."
 Sparta Foods, Inc. manufactures tortillas, tortilla chips, bunuelos, picante salsas and other sauces for sale and distribution to retail food stores and food service establishments, through its wholly owned subsidiary, La Canasta of Minnesota, Inc. In addition, Sparta manufactures barbeque sauces which are marketed by Ken Davis Product, Inc. under the "Ken Davis" label, and manufactures tortilla chips and picante salsas under private label for others. Sparta is a publicly held corporation and trades on the over-the-counter market in Minneapolis/St. Paul, Minn.
 -0- 01/06/92
 /CONTACT: Nicholas G. Grammas of Sparta Foods, 612-646-1888 or Melissa Quinn of Padilla Speer Beardsley, 612-871-8877, for Sparta Foods/ CO: Sparta Foods, Inc.; Cruz Distributing ST: Minnesota IN: FOD SU:


DS -- MN002 -- 6783 01/06/92 09:32 EST
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Publication:PR Newswire
Date:Jan 6, 1992
Words:336
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