Sugar giant drops the King
definitive stock purchase agreement to sell its King Packaging
Company.
Imperial Sugar Company announced this week that it has reached a definitive stock purchase agreement to sell its King Packaging Company, Inc. subsidiary to a subsidiary of Tyco International (US) Inc. for $28 million (€31.3 million) in cash, subject to certain post-closing adjustments.
The transaction closed immediately after signing of the agreement.
King, a subsidiary in the Diamond Crystal Brands foodservice division, is a manufacturer and marketer of a variety of custom-assembled and packaged disposable meal kits to foodservice customers. King represented approximately $27 million (€30.1million) 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 savoury products.''
Imperial Sugar Company is one of the largest processors and marketers of refined sugar in the United States and a major distributor to the foodservice market.
