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QUAKER UNIT TO SELL SAFE-T PACIFIC BUSINESS; REDWOOD CITY, CALIF., PLANT TO CLOSE

 REDWOOD CITY, Calif., Oct. 1 /PRNewswire/ -- Richardson Foods Corp., a subsidiary of The Quaker Oats Company (NYSE: OAT), announced today it has reached an agreement for the sale of its Safe-T Pacific ice cream cone baking business, based in Redwood, City, Calif., to the Joy Cone Company, located in Hermitage, Pa. The price and terms were not disclosed.
 The sale will include trademarks, inventory and certain fixed assets, but does not include the Redwood City manufacturing plant, which will be closed in early December, when the sale is expected to be completed. The closing will affect approximately 60 employees.
 Bruce Macleod, president of Richardson Foods, said, "The decision to sell the ice cream cone business was made after an extensive study concluded thaa?sed on its size and future prospects, it did not fit into our overall vision and strategic business plan.
 "Once this decision was made, we spent several months trying to locate a buyer who would continue to operate the Redwood City plant. It became apparent, however, that due to a number of factors, including the age of the plant and equipment and the capital investment required for modernization, that keeping the plant in operation would not be possible.
 "We are committed to provide severance benefits and a comprehensive outplacement program to the affected employees, in order to assist in the transition to future employment opportunities."
 Safe-T Pacific manufactures a line of ice cream cones which are sold under the brand name Scoopy's and the Natural Ice Cream Cone. In addition, the company sells sipping straws under the Scoopy's and Snoopy's brand names. The products are sold to both retail and foodservice channels.
 Safe-T Pacific Baking Company began in San Francisco in 1949 and moved to its present location in Redwood City in 1953. It has undergone several changes in ownership, with Richardson Foods acquiring the company in 1975.
 -0- 10/1/93
 /CONTACT: Ronald Bottrell, 312-222-7388, or Greg Litz, 415-365-8181, both of Quaker Oats/
 (OAT)


CO: Richardson Foods Corp.; Safe-T Pacific; Joy Cone Company ST: California, Pennsylvania IN: FOD SU:

MP -- NY051 -- 7803 10/01/93 12:32 EDT
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Publication:PR Newswire
Date:Oct 1, 1993
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