USA: Borden Foods announces sale of pasta businesses to New World Pasta
New World Pasta acquired Borden Foods' pasta-related subsidiaries in the United States, Canada and Italy. The operations involved include, in the U.S., the Creamette®, Prince®, Gioia®, Goodman's®, Merlino's®, New Mill® (kluski noodles) and Vimco® brands; in Canada, the Catelli® (including the Healthy Harvest, Bistro and Express lines), Lancia® and Splendor® pasta brands; and the Albadoro and Monder businesses in Italy. The businesses include production facilities in the U.S. in St. Louis, Mo., and Chicago, Ill.; in Canada in Montreal, Quebec, and Lethbridge, Alberta; and two in Italy. Aggregate annual sales are approximately $210 million.
"This transaction includes some of the most recognized pasta brands in North America," said C. Robert Kidder, Chairman, Borden Foods, and also Chairman and Chief Executive Officer of its affiliate, Borden, Inc. "The businesses are notable for the equity of these brands. Additionally, the Borden Foods team has made improvements to reduce operating costs and improve profits. Over the last three years in the U.S. business, manufacturing costs improved by 40% and pasta profitability improved by 40%."
Creamette® and Prince® are well-known, regional favorites -- holding number one or number two positions in the majority of the markets in which they are sold. Already the number one pasta brand in Canada, Catelli® leads the market in differentiated pasta items including the Healthy Harvest line of whole wheat pasta and Bistro flavored pasta items.
Goldman, Sachs & Co., an investment banking firm, acted as financial advisor to Borden Foods on this transaction.
Associates in Borden Foods' pasta business in the U.S. will become employees of New World Pasta, while associates in Canada and Italy will continue with their respective entities as New World Pasta subsidiaries.
Having announced transactions earlier in the month regarding several pasta brands and its pasta sauce and soups and bouillon businesses, Borden Foods continues to run its remaining business (It's Pasta Anytime®) and is engaged in discussions regarding strategic alternatives for that business.
Headquartered in Columbus, Ohio, Borden Foods Corporation is an affiliate of Borden, Inc. Other companies in the Borden Family include Borden Chemical, Inc., World Kitchen, Inc. and Elmer's Products, Inc.
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