Milling & Baking News - August 30, 2005 - 15

B U S I N E S S

Imperial Sugar sells Holly to
Southern Minnesota cooperative
SUGAR LAND, TEXAS - Imperial
Sugar Co. on Aug. 17 signed a definitive
agreement to sell its Holly Sugar Corp.
subsidiary to Southern Minnesota Beet
Sugar Cooperative.
Terms of the sale include an estimated
price of $50 million, adjusted based on actual working capital at closing, Imperial
Sugar said. In addition to cash, the sale is
expected to reduce Imperial's unfunded
pension liability by about $13 million and
related cash contribution requirements,
capital expenditure programs and working capital needs, the company said.
Imperial's working capital needs are
seasonal and are primarily the result of
its Holly Sugar operations, the company
said. In the current fiscal year, working

capital requirements reduced Imperial's
liquidity by about $40 million.
Imperial Sugar, based in Sugar Land,
said it expected the sale to close in September. Southern Minnesota, a cooperative based in Renville, Minn., with about
584 shareholders, markets its sugar
through Cargill Sweeteners, Minneapolis, and co-products through Midwest
Agri-Commodities Co., San Francisco.
Holly Sugar, which represents about
15% of Imperial's production capacity, has
beet sugar facilities in Brawley and Mendota, Calif., a distribution facility in Tracy,
Calif., and Holly Hybrids, Inc., a beet seed
processor and marketer in Sheridan, Wyo.
Holly Sugar's customers are primarily in
the industrial and food service business.

Circle Peak Capital acquires
sweet goods manufacturer
NEW YORK - Private equity firm Circle Peak Capital L.L.C. recently acquired
Hill & Valley, Inc., a manufacturer of
baked sugar free and no-sugar-added
sweet goods, sold under private label
and under the Hill & Valley brand label.
The investment represents Circle Peak's
expanding presence in the packaged
food & beverage segment, following investments in The Steak-Umm Co., Cole
Water Co. L.L.C. and Chomp Inc.
Financial terms of the transaction
were not disclosed.
Under the terms of the agreement,
Circle Peak and senior management

will recapitalize the company from the
founding Coin family. George Coin will
be retiring after building the company
into one of the largest suppliers of sugar
free and no-sugar-added bakery products in the retail grocery segment since
1988. Together with the current president, Scott Florence, Circle Peak and
the company will continue to build the
Hill & Valley brand on a national basis
in retail segments.
Hill & Valley Inc., which recently
changed its name from Nancy's Pies,
Inc., also appointed consumer packaged goods veteran Brian L. Gustaitis

Copesan breaks ground on new
international support center
BROOKFIELD, WISC. - Coming together for groundbreaking ceremonies at a
new international support system for Copesan's North American pest solutions
business were, from left to right,
Kevin Fixel, vice-president of finance, Copesan; Mike Campbell,
vice-president of
operations,
Copesan; Tom Moore, president,
Copesan; Alfie Treleven, chairman
of the board and chief executive
officer, Sprague Pest Solutions;
and Mike Ruland, director of information technology, Copesan.
The new 25,000-square-foot
facility will house the company's
current corporate office staff with
enough space to accommodate planned growth in future years, the company
said. MBN

16 / Milling & Baking News, August 30, 2005

"This transaction allows us to somewhat reduce the commodity nature of our
business, focus our attention on our core
cane refineries and our value-added retail
and food service strategy, and increase
the cash flow potential of the company's
operations," said Robert A. Peiser, president and chief executive officer of Imperial. "The decision was also influenced by
current conditions in the sugar industry
caused by historically low margins and
high energy costs that are particularly
significant at these California plants."
Imperial's cane refineries in Georgia
and Louisiana are not affected by the
sale of Holly. Imperial is one of the largest processors and marketers of refined
sugar in the U.S. Its brands include Imperial and Dixie Crystals, in addition to
Holly. Imperial will continue to own the
Holly brand, which is sold in some of its
business and retail segments. FBN

as non-executive chairman. Mr. Gustaitis, a Circle Peak advisory board
member, most recently held the position of president and chief operating
officer for Kozy Shack Enterprises.
He also has held senior management
positions at Tetley USA Inc. and Pepperidge Farm Inc.
"Hill & Valley is a very attractive investment opportunity for Circle Peak,
and we are well positioned to apply
growth capital and significant operating
expertise to the company," said R. Adam
Smith, Circle Peak's founder and managing partner. MBN

Fleischmann's Yeast
to hike prices on
propionate products
ST. LOUIS - Fleischmann's Yeast on
Aug. 16 said it will implement a price
increase on its calcium and sodium propionate products effective Sept. 15.
The company will raise the price for
these products by 12c per lb to customers in North America.
"This action is necessary due to the
dramatic increase in raw material and
distribution costs," the company said.
Earlier this month, the company said
it would raise the price for its fresh and
dry yeast in the eastern United States and
eastern Canada by 5c per lb and 17.5c per
lb, respectively. In the western United
States and western Canada the company
will increase fresh yeast 8c per lb and dry
yeast 29c per lb.
Fleischmann's Yeast is an AB Mauri
company, a global yeast and food ingredient products manufacturer. MBN
bakingbusiness.com / world-grain.com

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - August 30, 2005

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