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GENERAL MILLS TO PURCHASE NABISCO'S REMAINING CEREAL BUSINESS

 GENERAL MILLS TO PURCHASE NABISCO'S REMAINING CEREAL BUSINESS
 MINNEAPOLIS, Minn., Sept 1 /PRNewswire/ -- General Mills (NYSE: GIS) announced today that it has agreed to purchase the remaining worldwide ready-to-eat cereal business of RJR Nabisco, including Nabisco's U.S. and Canadian operations, for $450 million cash. The Nabisco cold cereal line includes Shredded Wheat, Spoon-Size Shredded Wheat and Shreddies.
 The action will reunify Nabisco's worldwide Shredded Wheat product line. In 1990, Nabisco's former cereal line in the United Kingdom was acquired by Cereal Partners Worldwide (CPW), the joint venture between General Mills and Nestle S.A.
 Nabisco's ready-to-eat cereals, with sales of $230 million in North America, have a dollar share of approximately 10 percent in Canada and less than 3 percent in the United States. Nabisco's shares in both countries have declined in recent years.
 Steve Sanger, executive vice president responsible for General Mills' Big G line of breakfast cereals and international foods, said that the acquisition will strengthen the Shredded Wheat product line's ability to compete in North America. Sanger said the acquisition will close upon receiving approval by the U.S. Federal Trade Commission and the Canadian Bureau of Competition.
 "Our goal is to revitalize the Shredded Wheat brands in North America just as our joint venture with Nestle has been successful in doing in the United Kingdom," Sanger said. "We intend to achieve such gains through established product improvements, new products and increased marketing support."
 General Mills said it expects to reduce manufacturing and distribution costs for the Nabisco brands and to market them aggressively. Nabisco's cereal line will become part of General Mills' Big G line of breakfast cereals and will be marketed through General Mills' existing sales and distribution systems in both the United States and Canada. Cereal production will be consolidated in Nabisco's Naperville, Illinois, and Niagara Falls, Ontario, plants, with Nabisco retaining an existing third plant in Niagara Falls, New York, for the manufacture of Nabisco's Triscuit snack crackers.
 "With the acquisition of Nabisco's remaining cereal business, General Mills will be in a better position to compete in a cereal industry that is increasingly characterized by worldwide brands and rapid international transfer of technology," Sanger said.
 -0- 9/1/92
 /CONTACT: (Analysts) Dean Belbas, 612-540-2443; or (Media) R. C. Shulstad, 612-540-3745, both of General Mills/
 (GIS) CO: General Mills ST: Minnesota IN: FOD SU:


KH -- MN014 -- 5607 09/01/92 16:53 EDT
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Publication:PR Newswire
Date:Sep 1, 1992
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