WLR FOODS PURCHASES SOUTHERN ICE COMPANY INC.
WLR FOODS PURCHASES SOUTHERN ICE COMPANY INC. HINTON, Va., May 6 /PRNewswire/ -- WLR Foods, Inc. (NASDAQ: WLRF)
today announced that it has purchased all the ice business assets of the Virginia division of Southern Ice Company Inc. in a private transaction for $600,000 cash and 153,125 shares of WLR Foods' common stock. Southern Ice Company is a Norfolk-based ice manufacturing and distribution company and complements the business of Cassco Ice & Cold Storage, a wholly-owned subsidiary of WLR Foods. As a result, Cassco is now the largest ice company in the Tidewater market of Virginia, increasing Cassco's total ice business approximately 30 percent.
WLR Foods President and Chief Executive Officer James L. Keeler stated, "The acquisition of Cassco two years ago has had a positive impact on WLR Foods earnings, and acquiring Southern Ice just prior to the ice industry's busiest part of the year, is another step in our efforts to stabilize earnings. We expect this purchase to add $2.3 million to annual revenues. The contribution of this business will also help to offset down cycles in poultry commodity prices such as we are experiencing now." Cassco Ice & Cold Storage President John J. Broaddus commented, "Business will continue as normal. All customers will receive the excellent quality service they expect from their ice company. We are very pleased to have this increased capacity to offer our customers." WLR Foods will continue to use the Southern Ice brand name temporarily to allow for a gradual, cost-effective transfer of the Cassco(R) branded product. Headquartered in Harrisonburg, Va., Cassco Ice & Cold Storage is the largest ice manufacturer in the Mid-Atlantic region of Virginia, West Virginia, Pennsylvania, Maryland and Delaware. It has manufacturing and distribution locations in Martinsburg, West Virginia; and Harrisonburg, Radford, Hampton, and Norfolk, Virginia. Other distribution centers are located in Roanoke, Richmond and Virginia Beach, Va. Additionally, it contracts with independent distributors in Pennsylvania, Maryland, West Virginia and Virginia. WLR Foods, Inc. is a fully-integrated provider of high quality turkey and chicken products under the Wampler-Longacre(R) label. The company has operations in Virginia, West Virginia and Pennsylvania, close to its major Mid-Atlantic markets. -0- 5/6/92 /CONTACT: June Filingeri or Bernie Kilkelly of Morgen-Walke Associates, 212-986-5900, for WLR Foods/ (WLRF) CO: WLR Foods Inc.; Southern Ice Company Inc. ST: Virginia IN: FOD SU: TNM
SH -- NY013 -- 6924 05/06/92 09:07 EDT
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|Date:||May 6, 1992|
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