| Imperial Sugar Company (OTC:IPSU) ("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) ("Tyco") for $28
million in cash, subject to certain post-closing adjustments.
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.
Statements regarding payback of debt, operating results, synergies,
future operating efficiencies, the Company's ability to maintain normal
relationships with customers, and other statements which are not
historical facts that may be contained in this release are forward-looking
statements that involve certain risks, uncertainties and assumptions.
These include, but are not limited to market factors, the effect of
weather and economic conditions, farm and trade policy, the ability of the
Company to realize planned cost savings, the available supply of sugar,
and other factors detailed in the Company's Securities and Exchange
Commission filings. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual
outcomes may vary materially from those indicated. |