Specialty Foods Acquisition Corp – ‘8-K’ for 10/14/98 – EX-99

As of:  Wednesday, 10/14/98   ·   For:  10/14/98   ·   Accession #:  912220-98-17   ·   File #:  33-68958

in

this entire Filing. an “Entity” Search.

Show

Documents searched

and

each “hit”. the 1st “hit”.

↓↑Hints

Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                         3±    12K 
 2: EX-99       Miscellaneous Exhibit                                  2±    11K 

EX-99   —   Miscellaneous Exhibit

EXHIBIT  99.5                                                                   

FOR IMMEDIATE RELEASE: October 14, 1998                                         

SPECIALTY FOODS ANNOUNCES BAKERY ACQUISITIONS,                      
EARNINGS INCREASE, BOND EXCHANGE                          

Acquisition of Archway Cookies Will                     
Create Nation's Third Largest Cookie Company                      

DEERFIELD, ILL. --  Specialty Foods Corporation today                           
announced that it has signed definitive agreements to                           
acquire two bakery companies, including national cookie                         
maker Archway Cookies, Inc.  The company also announced a 30                    
percent increase in EBITDA (earnings before interest, taxes,                    
depreciation and amortization) for the third quarter ended                      
September 30, 1998 and a 16 percent increase for the nine                       
month period.                                                                   

In addition, the company announced that holders representing                    
more than 50 percent of the Senior Secured Discount                             
Debentures of its parent company have indicated their                           
agreement with a private exchange that will postpone the                        
cash pay interest date and extend the maturity date of the                      
bonds.  As part of the exchange, the company is also seeking                    
consents from its debtholders to modify its corporate                           
organization.                                                                   

"We believe that these acquisitions, in combination with our                    
improving financial results and the bond exchange, represent                    
a defining moment for Specialty Foods," said Lawrence                           
Benjamin, president and chief executive officer of Specialty                    
Foods.                                                                          

"The acquisitions significantly strengthen our position as                      
one of the nation's leading branded baked goods companies,"                     
Benjamin noted.  "The bond exchange should provide us with                      
the additional flexibility to continue to build value at                        
Specialty Foods."                                                               

-more-                      

SPECIALTY FOODS ANNOUNCES BAKERY ACQUISITIONS                                   
Add One                                                                         

In addition to Archway Cookies, Specialty Foods is acquiring                    
San Diego Bread Company of San Diego, California.  Terms of                     
the individual agreements were not disclosed, although                          
Benjamin said that together the acquisitions would represent                    
an investment of over $100 million.  Consummation of certain                    
of these transactions is subject to customary closing                           
conditions, including the obtaining of approvals from                           
governmental regulatory agencies.                                               

Archway, based in Battle Creek, Michigan, produces more than                    
a billion cookies annually at two company-owned bakeries in                     
Ashland, Ohio and Boone, Iowa, and four licensed bakeries in                    
the U.S. and Canada.  The company bakes more than 60                            
varieties of cookies, including homestyle, holiday and sugar                    
free products under the Archway brand name.                                     

"Archway is one of America's great brands," said Benjamin.                      
"Since 1936, Archway has been providing unique, high quality                    
cookies to American families.  The addition of Archway to                       
our Mother's cookie business will establish Specialty Foods                     
as the third largest cookie company in the U.S. with                            
significant opportunities for growth."                                          

"We continue to pursue bread acquisitions that complement                       
our existing bread brands," Benjamin said.  "San Diego Bread                    
Company, our most recent bread acquisition, solidifies the                      
position of our Boudin brand as the premier traditional                         
sourdough bread in California."                                                 

Noting the financial results of Specialty Foods for the                         
first nine months of 1998, Benjamin said that the company                       
has seen the positive effect of its increased focus on the                      
baking industry.  Specialty Foods' EBITDA for the third                         
quarter of 1998 was $24.3 million compared to $18.7 million                     
for the third quarter of 1997.  EBITDA for the nine month                       
period ended September 30, 1998 was $52.3 million, up from                      
$44.9 million for the comparable period in 1997.                                

-more-                                                  

SPECIALTY FOODS ANNOUNCES BAKERY ACQUISITIONS                                   
Add Two                                                                         

Sales for the third quarter of 1998 were $229.7 million                         
compared to $238.0 million for third quarter of 1997.  Sales                    
for the nine month period ended September 30, 1998 were                         
$675.7 million compared to $679.1 million for the same                          
period in 1997.  While revenues for the company's bakery                        
businesses, which account for over 80 percent of total                          
sales, increased by three percent for the nine month period,                    
lower beef and pork prices reduced the revenue of the                           
company's meat subsidiary, H&M Food Systems.  Sales and                         
earnings have been adjusted to exclude the effect of                            
businesses divested in 1997.                                                    

Specialty Foods Corporation, one of the nation's leading                        
food manufacturers, is a group of companies engaged                             
primarily in baked goods with additional operations in                          
prepared meats.                                                                 
#  #  #                   

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘8-K’ Filing		Date		Other Filings
Filed on / For Period End:		10/14/98
		9/30/98		10-Q
				List all Filings