Parsippany, NJ - International Home Foods, Inc. a leading branded food products company, announced that it has entered into a definitive agreement to acquire the Libby's brand of retail and international canned meat products, and the Trenton, Missouri manufacturing facility for those products from Nestle USA, Inc. International Home Foods, through a long-term license agreement with Nestle, will continue to use the Libby's trademark. It is anticipated that the acquisition will be immediately accretive to IHF's earnings.
Founded in 1868, Libby's is a leading domestic manufacturer, importer and global marketer of canned meat products, including Vienna sausages, corned beef, salmon, hash and chili, and the Spreadables and Broadcast brands.
C. Dean Metropoulos, Chairman and Chief Executive Officer of International Home Foods, said: "This acquisition not only provides attractive growth opportunities, but it also offers significant synergies in purchasing, distribution and operating expenses. Furthermore, we anticipate that the proprietary manufacturing process used at the Trenton facility will allow IHF to continue to improve the quality of its existing brands."
IHF and Nestle have also entered into a long-term supply agreement under which IHF will continue to manufacture Nestle foodservice products at the facility in Trenton, Missouri.
Completion of the transaction, which is expected to occur during the third quarter of 1998, is subject to expiration of the applicable waiting period under the Hart-Scott-Rodino Act, as well as customary closing conditions.
Statements contained in this press release which are not historical facts are forward-looking statements. Such forward-looking statements are necessary estimates reflecting the best judgment of the party making such statements based upon current information and involve a number of risks and uncertainties. Forward-looking statements contained in this press release or in other public statements of the parties should be considered in light of those factors. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements.
Meat Industry Insights News Service
P.O. Box 553
Northport, NY 11768
Phone: 631-757-4010
Fax: 631-757-4060
E-mail: sflanagan@sprintmail.com
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