Borden Foods Corporation yesterday announced that it has reached a definitive agreement to sell selected brands within its U.S. pasta business to the American Italian Pasta Company (NYSE:PLB).
The pasta brands to be acquired by AIPC, headquartered in Kansas City, Missouri, include Anthony’s®, Globe A-1®, Luxury®, Mrs. Grass® noodles, Pennsylvania Dutch® noodles, R&F®, and Ronco®. Aggregate annual sales of theses brands are approximately $63 million.
“BFC has made improvements to the pasta business over the last several years – significantly improving profit contribution, consumption and market share in a highly competitive marketplace. Borden Foods associates should be proud of their contributions, and AIPC should be excited about acquiring these solid brands.” said C. Robert Kidder, Chairman, Borden Foods, and also Chairman and Chief Executive Officer of its affiliate, Borden, Inc. “Our decision to sell these assets at this time is based in part on the progress that has already been made, and in part on the opportunity for synergies created by complementing AIPC’s portfolio.”
The transaction is valued at approximately $67.5 million, plus inventory. It is subject to customary closing conditions and is expected to be completed within the next one to three months. Goldman, Sachs & Co., an investment banking firm, is acting as financial advisor to Borden Foods.
This transaction does not include any of the Borden Foods pasta manufacturing facilities. Borden Foods is continuing to engage in discussions related to strategic alternatives for the remainder of its businesses, which include pasta sauce (including the Classico® and Aunt Millie’s® brands), Wyler‘s soups and bouillon, It’s Pasta Anytime(TM) convenience meals, the remaining portion of the U.S. pasta business, as well as the Borden Foods Canadian and Italian businesses, and expects to announce further transactions.
Borden Foods Corporation is an affiliate of Borden, Inc. Both are privately owned by the investment firm Kohlberg Kravis Roberts & Co. and headquartered in Columbus, Ohio.