International Multifoods Corp. (NYSE:IMC) yesterday said that it now expects its acquisition of Pillsbury’s desserts and specialty products businesses, Pillsbury’s non-custom foodservice baking mix business and General Mills’ U.S. Robin Hood brand to close by July 31. The company previously said it expected to complete the transaction by the end of May.
The Federal Trade Commission is requiring the sale of these businesses as a condition for granting its approval of General Mills’ merger with Pillsbury. The merger and divestiture remain in the regulatory review process.
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The current consensus estimate among analysts for Multifoods’ fiscal 2002 earnings is $1.55 per share. This estimate assumes results from the acquisition for nine months of the company’s fiscal year. Given the two-month delay in closing, Multifoods expects its full-year fiscal 2002 earnings to be in the range of $1.45 to $1.50 per share.
The acquisition, which was announced in February, includes a long-term license to use the Pillsbury trademark in the desserts and baking mix category, the outright purchase of the Hungry Jack, Martha White and U.S. Robin Hood trademarks, and a five-year license for the Pillsbury trademark in the non-custom foodservice baking mix category. Combined, these businesses generate net sales of about $450 million, and Multifoods anticipates purchasing them for approximately $305 million in cash.
“We look forward to completing the acquisition, which will enhance our position in grain-based foods and broaden our portfolio of branded, value-added products,” said Gary Costley, International Multifoods chairman, president and chief executive officer. “Transition plans are in place, and we are eager to move forward to grow these businesses for the benefit of consumers, customers, employees and shareholders.”
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By GlobalDataInternational Multifoods is a manufacturer for and distributor to the foodservice industry in North America. The company also is a leading manufacturer and marketer of consumer foods in Canada. Further information about International Multifoods is available on the Internet at http://www.multifoods.com.
Forward-Looking Language
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the company’s operations and financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the closing of the proposed acquisition and the timing of the close; actions in the financial markets; regulatory approval related to the proposed acquisition; integration problems associated with the proposed acquisition; the impact of competitive products and pricing; market or weather conditions that may affect the costs of grain, cheese, other raw materials, fuel and labor; changes in laws and regulations; fluctuations in interest rates; fluctuations in foreign exchange rates; risks commonly encountered in international trade; and other factors as may be discussed in the company’s Report on Form 10-K for the year ended Feb. 29, 2000, and other reports filed with the Securities and Exchange Commission.
