STEWART FOODS AND BLEVINS CONCESSION SUPPLY CO. TO MERGE
STEWART FOODS AND BLEVINS CONCESSION SUPPLY CO. TO MERGE NORFOLK, Va., June 24 /PRNewswire/ -- Management of Stewart Foods, Inc. (formerly Stewart Sandwiches, Inc.) (NASDAQ: STEW) and Blevins Concession Supply Co., Inc., a privately held Tampa, Fla. based company, announced jointly today that they have signed a letter of intent which provides for the merger of the two companies. Under the proposed merger, 2,938,000 shares of Stewart's common stock would be issued to Blevins shareholders. The surviving corporation would be Stewart- Blevins, Inc., a Virginia corporation with its principal offices located in Tampa. It will continue to maintain offices in Norfolk, Va., location of Stewart's manufacturing operations. Stewart Foods, which has been in operation since 1956, is a producer and distributor of fresh and frozen sandwiches and other refrigerated food products. It operates a wholesale route system from 24 sales centers distributing a wide variety of sandwich products, prepackaged meats and cheeses, coffee, pastries and other baked goods. Stewart also sells and distributes meat patties and sandwich products to private and public schools and to the vending and grocery trade. As Franchisor, it also serves 22 Stewart franchisees nationwide. Blevins Concession Supply Co., headquartered in Tampa, is the largest wholesale concession supply distributor in the U.S. The Company was founded in 1945, and today has 20 branches servicing movie theaters, stadiums, arenas, amusement parks and other concessionaires. Since 1989, the company has completed 17 acquisitions and increased revenues from $10 million to approximately $55 million. Its acquisition in 1990 of a processing operation has led to a private label line of fifteen new products including popcorn, cooking oils, butter topping, cheeses, salts, and bakery materials. Peder Wallenberg and Randall F. Greene, now Chairman and Chief Executive Officer of Blevins, will continue in those positions in the merged company.
H. Ross Arnold III, now Chairman of Stewart, will be named Vice Chairman and Chairman of the Executive Committee of the new company. Douglas J. Stanard, Stewart's current President and Chief Operating Officer, will continue in those positions with Stewart- Blevins, Inc. The current five members of the Board of Directors of Stewart Foods will continue on the Board of the merged company and will be joined by five Blevins' Directors, including Messrs. Wallenberg and Greene. The Stewart-Blevins Board will be expanded to 10 members.
Messrs. Greene and Stanard hailed the proposed merger as a major achievement which "advantageously serves the long-term interests of the shareholders and customers of both companies. The merger will provide each company's shareholders with an attractive opportunity to share in the future growth of the combined Stewart-Blevins operation." The transaction is subject to negotiation of a definitive agreement, approval of the companies' Boards of Directors and shareholders, and other conditions typical of these transactions. It is estimated that the merger will be completed on or about Nov. 15, 1992. -0- 6/24/92 /CONTACT: Donna Eller, Stewart Foods, Inc., 804-466-9200/ (STEW) CO: Stewart Foods, Inc.; Blevins Concession Supply Co., Inc. ST: Virginia, Florida IN: FOD SU: TNM
CM-JM -- CH005 -- 3317 06/24/92 13:05 EDT
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|Date:||Jun 24, 1992|
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