PEPSI-COLA NORTH AMERICA TO ACQUIRE ALPAC CORP.
SEATTLE, May 13 /PRNewswire/ -- Pepsi-Cola North America has signed a letter of intent to acquire ALPAC Corp. of Seattle, it was announced today by Carl G. Behnke, president and chief executive officer of ALPAC. He declined to release financial details of the transaction, which is expected to become final on June 25. ALPAC is the nation's second-largest independent bottler of Pepsi- Cola and a bottler of Seven-Up and related soft drink products. Behnke said that selling the company will enable its owners -- all members of Washington's Behnke, Nordhoff and Skinner families -- to pursue other interests. "The sale is part of a long-term strategy to restructure and convert various family assets in order to allow us to pursue a wider range of business and philanthropic activities," Behnke explained. Behnke said that he would leave the company, but that a number of ALPAC's senior managers are expected to remain in place. ALPAC, which will retain its present name, operates 13 bottling and distribution facilities in Oregon, Idaho, Hawaii, Alaska and Washington, including plants at Seattle, Tacoma, Everett and Spokane, Wash. The company employs over 1,200 people and reported sales of $300 million in 1992, making it the largest Pepsi and Seven-Up bottler in the northwestern United States. Pepsi-Cola has owned 15 percent of ALPAC since 1988 and currently owns 52 percent of Pepsi bottling operations nationwide. The planned buyout is subject to regulatory review. "ALPAC is the second-largest Pepsi-Cola bottling company in the U.S. and one of the most well-managed in the industry," said Craig Weatherup, president and chief executive officer of Pepsi-Cola North America. "This is a strategic investment for us and another important step in strengthening the Pepsi-Cola system to better meet our customers' needs." ALPAC -- together with N C Machinery Co. and Skinner Corp., two other firms owned by the Behnke, Nordhoff and Skinner families -- has provided funding for the Skinner Foundation, which makes educational, cultural, community and social service grants to nonprofit agencies in the communities where ALPAC operates. "The families remain committed to playing an active philanthropic role in the community," stated Catherine Eaton Skinner, chairperson of the foundation's board of trustees. She added that the Skinner Foundation will be restructured in view of the sale. ALPAC was founded by David E. Skinner as the Alaska Pacific Salmon Co. in 1911. Its original focus was the harvesting, processing, canning and distribution of Alaska salmon, but it eventually expanded into numerous other fields. It withdrew from the salmon business in 1952 and in 1958 acquired the Glaser Beverage Co. of Seattle and Tacoma, a franchise bottler of Pepsi-Cola and Seven-Up. It later secured additional Pepsi bottling franchises throughout the Pacific Northwest, Inland Empire, Hawaii and Alaska. The company has remained jointly owned and managed by Skinner's descendants, primarily members of the Behnke, Nordhoff and Skinner families. -0- 5/13/93 /CONTACT: Susan Hebert of ALPAC, 206-326-7471/
CO: Pepsi-Cola North America; ALPAC Corp. ST: Washington IN: FOD SU: TNM
SW-AL -- SE006 -- 8079 05/13/93 12:01 EDT
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|Date:||May 13, 1993|
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