Printer Friendly

BURNS PHILP AGREES TO ACQUIRE DURKEE BRAND

 BURNS PHILP AGREES TO ACQUIRE DURKEE BRAND
 SYDNEY, Australia, Jan. 24 /PRNewswire/ -- Burns Philp and Company


Limited of Australia announced today the signing of letters of intent to acquire Reckitt & Colman plc's Durkee-French spice and seasonings business in the United States and Canada. Total cost of the acquisition would be US$86 million.
 The acquisition, in the U.S., will be subject to finalization of the contract and the approval of the U.S. government under the Hart- Scott-Rodino Anti-Trust Improvements Act.
 The Durkee-French food division markets products under the Durkee and French brand names in the U.S. In Canada, the brand names are French's, Schwartz, and Durkee.
 The product categories to be acquired include spices, gravies, seasonings, and cake decorations. They span both the retail and food service sectors and
represent approximately 2,900 items of various sizes and types. (Not included in the planned acquisition are such branded products as French's Mustard, RedHot Sauce, French Fried Onions and Cattlemen's Barbecue Sauce.)
 "The acquisition of Durkee would allow further development of our already successful North American consumer foods division which markets Fleischmann's Yeast, Dromedary Dates and Pimientos and Spice Islands spices," said Andrew Turnbull, chief executive and managing director. "There will be synergistic benefits in raw materials sourcing, manufacturing, marketing and distribution."
 The assets to be acquired include plant, equipment and intellectual property consisting of brand names and trademarks.
 Commenting on the acquisition, Turnbull said, "While our primary goal in foods continues to be leadership in the global baker's yeast industry, expansion into carefully and closely linked segments of the retail foods market is providing excellent growth opportunities."
 Burns Philp entered the North American market for processed consumer foods in 1986 with the acquisition of Fleischmann's Yeast and Vinegar operations. The consumer food unit, operating under the name Specialty Brands and headquartered in San Francisco, was established after the acquisitions of Spice Islands and Dromedary in 1988. Specialty Brands is currently engaged in sale and distribution of gourmet herbs and spices, and wine vinegar under the Spice Islands name; dates, pimientos and other related products under the Dromedary name; consumer yeast under the Fleischmann's name; and in Canada, consumer vinegar using the brands of Allens and Winston House, and Blue Ribbon herbs and spices.
 In the fiscal year ending last June 30, Burns Philp reported sales turnover of A$441 million (US$344 approx.) and net profit after tax of A$34 million for its North and South American food and fermentation operations. Contribution from the Durkee business in the current financial year is expected to be small given the seasonal nature of business activity, the majority of which is earned in the June to December period. The acquisition will be funded by low interest rate debt financing in the U.S. for which facilities already exist.
 Burns Philp announced a net profit before abnormal and extraordinary items of A$90 million on sales of A$2265 million in the year to June 1991. Half year results to Dec. 31, 1991 will be released on Feb. 19.
 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: 3BPHYC), and are traded in the Pink Sheets. One ADR equals six Burns Philp shares.
 -0- 1/24/92
 /CONTACT: Andrew Turnbull, chief executive & managing director, (in Sydney) 61-2-259-1111; Ian Clack, division general manager-food & fermentation, 415-296-5701; John Cowling, general manager-finance, (in Sydney) 61-2-259-1265, all of Burns Philp; or Janet Sparre or Paul Whitelaw of Hill and Knowlton, 212-697-5600, for Burns Philp/ CO: Burns Philp and Company Limited; Reckitt & Colman plc ST: California IN: FOD SU: TNM


JT -- NY068 -- 3397 01/24/92 15:26 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 24, 1992
Words:632
Previous Article:MARRIOTT AWARDED CONCESSION CONTRACT FOR MELBOURNE INTERNATIONAL TERMINAL
Next Article:PLAINS RESOURCES CUTS FEBRUARY GAS PRODUCTION
Topics:


Related Articles
BURNS PHILP RECEIVES OK ON DURKEE PURCHASE
BURNS PHILP FINALIZES U.S. DURKEE PURCHASE
INTEGRATED INGREDIENTS PLANS TO PURCHASE ASSETS OF PROVESTA CORP.
RYKOFF-SEXTON SIGNS LETTER OF INTENT TO SELL TONE BROTHERS SUBSIDIARY
RYKOFF-SEXTON SIGNS DEFINITIVE AGREEMENT TO SELL TONE BROTHERS SUBSIDIARY
RYKOFF-SEXTON SIGNS DEFINITIVE AGREEMENT TO SELL TONE BROTHERS SUBSIDIARY
RYKOFF-SEXTON COMPLETES SALE OF TONE BROTHERS SUBSIDIARY TO BURNS PHILP
Burns Philp to BB- From BB+, On S&P Watch Neg
Australia's largest food group Burns, Philp & Co Ltd, has put its Tone Brothers North American herbs and spices division up for sale, on hopes it...

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters