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HERCO TO SELL HM&C RETAIL LINE TO HATFIELD

 HERSHEY, Pa., July 30 /PRNewswire/ -- HERCO Inc. (HERCO) announced today that it has entered into a formal agreement with Hatfield Quality Meats Inc. (Hatfield), Hatfield, Pa., to transfer the retail food distribution line of its HERSHEY Meats & Commissary (HM&C) operation to Hatfield, effective Aug. 16, 1993.
 In keeping with HERCO policy, financial terms of the transaction will not be disclosed.
 On July 26, HERCO announced that, while it had reached an agreement in principle to transfer the institutional food distribution line of the HM&C business to Feesers Inc. (Feesers) effective Sept. 6, 1993, it would be closing the HM&C facility and ceasing retail operations on the same date. In an unexpected move, Hatfield, one of the parties that had originally negotiated with HERCO to acquire the retail side of the HM&C operation but then withdrew from negotiations, contacted HERCO again on July 28 and made a formal offer for the retail line. HERCO and Hatfield came to terms on the deal late yesterday.
 Under the agreement, Hatfield will purchase HM&C's customer lists from the retail side of the HM&C business, portions of the HM&C retail inventory, and various pieces of equipment. In addition, Hatfield will enter into a formal agreement with HERCO which will permit Hatfield to market HERSHEY Meats brand, private label products to its retail customers through June 1, 1994. HERSHEY Meats brand, private label products include, among others, HERSHEYPARK Franks, HERSHEY Meats Bacon, HERSHEY Meats Ham and HERSHEY Meats Turkeys.
 The agreement also provides for an extension of Hatfield's existing sponsorship with HERSHEYPARK through the year 1996. Under its sponsorship agreement, Hatfield is recognized as the "official frank of HERSHEYPARK," and Hatfield receives signage throughout the Park including the Hatfield Showcase Review hot dog and concession stand located next to the HERSHEYPARK Amphitheatre.
 As previously reported by HERCO, negotiations continue with a number of interested parties to acquire the 38,000-square-foot HM&C warehouse facility and approximately 15 acres located at 200 East Hersheypark Drive, Hershey. Hatfield intends to service its new and existing customers out of its modern warehouse facility at 2700 Funks Road, Hatfield, Pa. Hatfield does not expect to hire any new employees as a result of today's announcement.
 Also, as previously announced, operations will cease at HM&C on Sept. 6, 1993, when Feesers takes over the institutional line of the HM&C business.
 /delval/
 -0- 7/30/93
 /CONTACT: Jay Feaster of HERCO, 717-534-3143/


CO: HERCO Inc.; Hatfield Quality Meats Inc. ST: Pennsylvania IN: FOD SU:

JM-CC -- PH021 -- 7751 07/30/93 12:30 EDT
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Publication:PR Newswire
Date:Jul 30, 1993
Words:430
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