SUGAR LAND, Texas–(BUSINESS WIRE)–Imperial Sugar Company (OTC:IPSU – news; “Imperial”) today announced that it has reached a definitive stock purchase agreement to sell its King Packaging Company, Inc. (“King”) subsidiary to a subsidiary of Tyco International (US) Inc. (NYSE: TYC – news; “Tyco”) for $28 million in cash, subject to certain post-closing adjustments.
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The transaction closed immediately after signing of the agreement.
Upon completion of the transaction and escrow, Imperial expects to apply approximately $24.5 million of the net after-tax proceeds to permanently reduce debt. King, a subsidiary in the Diamond Crystal Brands foodservice division, is a leading manufacturer and marketer of a variety of custom-assembled and packaged disposable meal kits to foodservice customers. King represented approximately $27 million in net sales in the fiscal year ended September 30, 2001.
Walter C. Lehneis, President of Diamond Crystal Brands, stated, “While King was a profitable and growing business it did not fit the strategic direction of Diamond Crystal Brands’ foodservice business. The divestiture of King will allow Diamond Crystal Brands to refocus on our core businesses of packets, dessert and beverage mixes, sugar and savory products. We will make every effort to provide a seamless transition of the King business to Tyco International, ensuring that our customers are well serviced with the quality products they have come to expect.”
Imperial Sugar Company is the largest processor and marketer of refined sugar in the United States and a major distributor to the foodservice market. The Company markets its products nationally under the Imperial(TM), Dixie Crystals(TM), Spreckels(TM), Pioneer(TM), Holly(TM), Diamond Crystal(TM) and Wholesome Sweeteners(TM) brands. Additional information about Imperial Sugar may be found on its web site at www.imperialsugar.com.
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