DIAL CORP.'S ACQUISITION OF UNITED AIRLINES KITCHENS PROCEEDING ON SCHEDULE; CHAIRMAN CALLS CONTRACT 'BINDING'
PHOENIX, Nov. 29 /PRNewswire/ -- Dobbs International Services, a subsidiary of The Dial Corp. (NYSE: DL) is proceeding on schedule with its acquisition of 15 United Airlines flight kitchens, John W. Teets, Dial chairman, president and chief executive officer, said today. "We have a binding contract and we are moving forward rapidly to take over the kitchens. The transition will continue through early 1994," Teets said. "We were very pleased to learn last week that an arbitration decision has upheld the right of United Airlines to sell its kitchens without requiring that Dobbs International be bound by United's collective bargaining agreement with its union," he said. This was the final major hurdle to clear for Dobbs International's acquisition of the United kitchens. Finalization of the agreement had been announced on Nov. 13. The $119.4 million acquisition will make Dobbs International the largest domestic in-flight food service caterer. Under the terms of the asset-purchase agreement, Dobbs will become United's exclusive in-flight caterer at the 12 airports where the kitchens are located. First-year sales under the 7-year contract are projected at $271 million. Following completion of the acquisition, Dobbs International, based in Memphis, Tenn., will operate 68 kitchens in 51 airports. The Dial Corp., headquartered in Phoenix, is a $3.4 billion consumer products and services company. -0- 11/29/93 /CONTACT: Ann Adams, 602-207-5121/ (DL)
CO: Dobbs International Services; The Dial Corp.; United Airlines ST: Arizona IN: AIR SU: TNM
LM-EH -- LA038 -- 8441 11/29/93 16:46 EST
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|Date:||Nov 29, 1993|
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