PRESIDENT BAKING COMPANY ACQUIRES FAMOUS AMOS
PRESIDENT BAKING COMPANY ACQUIRES FAMOUS AMOS ATLANTA, Sept. 17 /PRNewswire/ -- President Baking Company, Inc.
today announced the acquisition of the San Francisco-based Famous Amos Chocolate Chip Cookie Corporation from The Shansby Group for $60.6 million.
Famous Amos markets the nationally known Famous Amos brand cookies. The transaction was announced jointly by George K. Liu, vice chairman and chief executive officer of President Baking, and J. Gary Shansby, managing general partner of The Shansby Group. Famous Amos will retain its existing employees and management. "This is an important strategic decision which makes President Baking a national company with strong brands, recognized by both retailers and consumers," said Liu. "The addition of this nationally recognized brand strengthens our overall market position and offers significant opportunities to further develop our various brand franchises." President Baking manufactures and distributes brands that include Murray, Jack's, Marietta, Jackson's, Bishop, Plantation, Little Brownie Bakers, Olde New England, Barbara Dee and Becky Kay's. The Little Brownie Bakers brand is the largest supplier for the annual Girl Scout cookie sale. "Famous Amos is a natural fit to our company, and we have already begun the process of integrating the Famous Amos division's activities with those of our other three divisions so we can best leverage our existing distribution systems and the Famous Amos brand," added Liu. Shansby called Famous Amos "the perfect example of a successful American business turnaround through strong management participation by an investment fund." "When we acquired Famous Amos at the end of 1988, annual sales were $6 million," said Shansby. "This year, Famous Amos will have sales of approximately $75 million and operating earnings will be significant." The Shansby Group cut costs and unprofitable operations, and repositioned the brand so that Famous Amos became not only a viable business but a formidable competitor in its category. "It's the kind of success story every investment fund dreams about because we increased value by rebuilding the company, rather than by breaking it up and selling the pieces," Shansby added. President Baking, headquartered in Atlanta, employs more than 3,000 people. With annual sales of almost $450 million, it is one of the largest producers of cookies, crackers and sweet snacks in the U.S. The company issued an offering of $100 million in subordinated debt in 1988, of which $80 million remains outstanding. The Shansby Group completed its first partnership in November 1987, and has made six acquisitions to date. The group focuses on creating value by operationally improving small- to medium-sized consumer companies that have brand name products. -0- 9/17/92 /CONTACT: Peter G. Mathon of Cohn & Wolfe, 404-352-8015 (home), for President Baking/ CO: President Baking Company, Inc.; Famous Amos Chocolate Chip Cookie Corporation ST: Georgia, California IN: FOD SU: TNM
BR-TG -- AT014 -- 0782 09/17/92 15:31 EDT
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|Date:||Sep 17, 1992|
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