SPARTA FOODS, INC., TO ACQUIRE INTERNATIONAL FOOD PRODUCTS, INC.
ST. PAUL, Minn., July 15 /PRNewswire/ -- Sparta Foods, Inc., announced today that it has signed a letter of intent to acquire substantially all of the assets of International Food Products, Inc., a Lakeville, Minn., manufacturer of tortillas and tortilla chips. International Food Products, Inc., with sales of approximately $2.7 million in 1992, markets its products at retail under the Paradiso(TM) and Mexitos(TM) brand names. Primary customers include the Rainbow and Cub Foods grocery chains, along with many other retail grocery stores, local food manufacturers, and food service establishments in the Midwest through Peglor Sysco in Omaha, Neb. The acquisition, which is subject to certain conditions, is for $3.5 million in a combination of assumed liabilities, cash and common stock of Sparta Foods, Inc. It is scheduled to be completed by October 1993. Fredoon Anvary, who has been chairman, president and chief executive officer of International Food Products, will join the Sparta Foods board of directors. Nicholas G. Grammas, chairman and chief executive officer of Sparta Foods, said, "This important acquisition is a further step toward realizing our objective of profitable growth. We will now have sufficient capacity to consolidate all manufacturing operations in Minnesota, and support our sales growth objectives for several years. With this acquisition, Sparta Foods will be the leader in the distribution of tortillas, tortilla chips, salsa and burritos to food service distributors and establishments in the Midwest. "We are very pleased that Fred Anvary will be joining our board of directors. His expertise in food products manufacturing and distribution will be a significant asset in our future planning, and we look forward to his contributions." Sparta Foods, with fiscal 1992 sales of more than $7.5 million, is a manufacturer and distributor of food products in the rapidly growing Mexican-style food service and retail grocery business. The company manufactures and distributes tortillas, tortilla chips, burritos, Mexican-style salsa and other sauces to retail food stores and food service establishments, through its wholly owned subsidiaries, La Canasta of Minnesota, Inc., and Cruz Mexican Foods, Inc. Sparta Foods, Inc. is headquartered in St. Paul, and its common stock is traded over-the-counter in Minneapolis-St. Paul, with the symbol SPFO. -0- 7/15/93 /CONTACT: Doug Ewing of Swenson Falker Eilertsen, 612-371-0000, for Sparta Foods; or Nicholas Grammas of Sparta Foods, 612-646-1888/
CO: Sparta Foods, Inc. ST: Minnesota IN: FOD SU: TNM
AL -- MN011 -- 1794 07/15/93 09:17 EDT
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|Date:||Jul 15, 1993|
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