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PILLSBURY TO ACQUIRE FROZEN BUSINESS OF MCGLYNN BAKERIES

 PILLSBURY TO ACQUIRE FROZEN BUSINESS OF MCGLYNN BAKERIES
 MINNEAPOLIS, Jan. 8 /PRNewswire/ -- Grand Metropolitan PLC, the


parent company of Pillsbury, announced today an agreement to purchase the frozen products division of McGlynn Bakeries, Inc., an industry leader in high quality frozen bakery products for the wholesale and retail trade.
 The purchase consideration, which is not material in relation to Grand Metropolitan shareholders' funds, will be satisfied by the issue of new ordinary shares of 50 pence each of Grand Metropolitan PLC, and a further announcement will be made when application is made to the London Stock Exchange for the listing of such shares.
 It is expected that completion of the purchase of McGlynn's, which is subject to U.S. legal and regulatory approval, will take place during February and that the transaction will immediately benefit GrandMet's earnings per share.
 McGlynn's frozen products division manufactures and markets a line of frozen dough, batter and frozen pre-baked products, danish and puff pastries, muffins and cookies and is the highest volume, lowest cost, producer of croissants in the U.S.
 The acquisition will complement Pillsbury's baked goods businesses, where it is already a leading provider of baking and other products to foodservice and bakery outlets.
 Paul S. Walsh, joint chief operating officer, GrandMet Food Sector, said, "We are very pleased to be announcing this agreement with an outstanding company, one with an exceptional track record in the frozen products category. The frozen products line of McGlynn's significantly strengthens GrandMet's portfolio of well known food brands which includes Pillsbury, Green Giant, Totino's and Jeno's."
 Walsh said the acquisition of McGlynn's frozen products division provides a prime opportunity to gain critical mass in the growing U.S. in-store bakery channel. It will help build the bakery presence of Pillsbury by expanding the product line and adding scale, he said.
 McGlynn's frozen operations, which employ over 700 people, sells its frozen products to major grocery chains and leading foodservice accounts nationwide, using a direct and broker sales force. The company, which is privately owned and based in Minneapolis, was founded by its current chairman, Burton McGlynn.
 The transaction does not include McGlynn's retail bakery operations or its cake decorating supply business.
 Pillsbury is a subsidiary of the Food Sector of Grand Metropolitan PLC, one of the largest international companies in the United Kingdom and a world leader in drinks, retailing and food. Sales are in excess of $15 billion. Other well known U.S. brands including ALPO Petfoods, Haagen-Dazs, J&B Rare Scotch Whisky, Smirnoff, Baileys Original Irish Cream, Burger King and Pearle.
 -0- 1/08/92
 /CONTACT: Terry J. Thompson of Pillsbury, 612-330-4768/ CO: Pillsbury ST: Minnesota IN: FOD SU: TNM


DS -- MN006 -- 7727 01/08/92 11:09 EST
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Publication:PR Newswire
Date:Jan 8, 1992
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