PITTSBURGH, Dec. 20, 2000 /PRNewswire/ -- H. J. Heinz Company (NYSE: HNZ)
today announced that it has entered into discussions to acquire the CSM Food
Division of CSM Nederland NV of Diemen, near Amsterdam. Discussions are at a
stage where it is expected that an agreement can be reached with completion of
the transaction early in 2001.
CSM Food Division, a major food company in the Benelux (Belgium, the
Netherlands, Luxembourg) region, holds the number-one or number-two brands in
each of its markets. CSM's products include the US$100 million Honig brand of
soups, sauces and pastas; Hak brand vegetables packed in glass; and KDR
(Koninklijke De Ruijter) brand sports drinks and fortified juices.
Additionally, the company markets KDR spreads and sprinkles, which are very
popular as traditional toppings for breakfast breads and toasts.
CSM products are sold not only in retail supermarkets and shops but also
to foodservice customers for away-from-home eating establishments. The
acquisition will double Heinz's foodservice sales in the Benelux region.
"CSM brand dry, chilled and concentrated soups, sauces and pastas will
perfectly complement our international canned soup and pasta brands. The CSM
range will become part of our Meal and Snack Solutions business, which
worldwide has grown at a 5 percent compound annual growth rate in the two
years since Fiscal 1998 and is expected to accelerate to double-digit rates
this year. This investment will make us the second-largest food company in
Benelux, where the Honig, Hak and KDR brands are consumer favorites. It will
extend our product mix into the dry soup segment and, at the same time, will
strengthen our sales in Northern Europe," noted Heinz Chairman, President and
CEO William R. Johnson. "KDR sports drinks also will allow us to enter this
fast-growing beverage market."
Heinz currently operates its primary European condiments factory in Elst,
the Netherlands and has been a leading food manufacturer in that country since
1958 when it acquired a local food processor.
Further details and terms of the discussions have not been released. The
agreement will be subject to appropriate E.U. regulatory clearance.
This news release contains forward-looking statements regarding the
company's future performance. These forward-looking statements are based on
management's views and assumptions, and involve risks, uncertainties and other
important factors that could cause actual results to differ materially from
those expressed or implied in the forward-looking statements. These include,
but are not limited to, sales, earnings and volume growth, competitive
conditions, production costs, industry conditions, achieving cost savings
programs, success of acquisitions, including integration of acquisitions, and
new product and packaging innovations, and other factors described in
"Cautionary Statement Relevant to Forward-Looking Information" in the
company's Form 10-K for the fiscal year ended May 3, 2000, as updated from
time to time by the company in its subsequent filings with the Securities and
Exchange Commission.
ABOUT HEINZ: With sales over US$9 billion, H. J. Heinz Company is one of
the world's leading marketers of branded foods to consumers everywhere,
whether in supermarkets, restaurants or on the go. Its 50 companies operate
in some 200 countries, with more than 20 power brands, including the Heinz
brand with nearly $3 billion in annual sales. Among the company's famous
brands are Heinz, StarKist, Ore-Ida, 9-Lives, Wattie's, Plasmon, Farley's,
Smart Ones, The Budget Gourmet, Bagel Bites, John West, Petit Navire, Kibbles
'n Bits, Pounce, Pup-Peroni, Orlando, ABC, Olivine, Juran and Pudliszki.
Heinz also uses the famous brands Weight Watchers, Boston Market and Linda
McCartney under license. Information on Heinz is available at
http://www.heinz.com.
SOURCE H. J. Heinz Company
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Related links:
http://www.heinz.com
Company News On-Call:
http://www.prnewswire.com/comp/575757.html or fax,
800-758-5804, ext. 575757
CONTACT:
MEDIA: Ted Smyth, SVP-Corp. & Govt. Affairs,
412-456-5780; Debbie Foster, Director-Corp. Comm., 412-456-5778;
or Jack Kennedy, GM- Strategic Comm., 412-456-5923; EUROPEAN
MEDIA: Nigel Dickie, 44-207-298-6525. INVESTORS: Jack Runkel,
VP-Investor Relations, 412-456-6034, all of Heinz
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