Milling & Baking News - October 24, 2006 - (Page 1)

Theinewsweeklyiofigrain-basedifoods OCTOBER 24, 2006 / IAWS Group expands in U.S. purchasing Otis Spunkmeyer Getting more in fiber DUBLIN, IRELAND - The IAWS Group, P.L.C. will dramatically increase its U.S. sales to more than $530 million through the acquisition of Otis Spunkmeyer Holdings, Inc., a leading U.S. specialty baked foods business. IAWS, based in Dublin, said on Oct. 16 it had signed an agreement to buy the U.S. specialty baked foods business from the private equity firm of Code Hennessy & Simmons and the current management team of Otis Spunkmeyer. Otis Spunkmeyer, San Leandro, Calif., reported revenues of $336 million for the year ended Dec. 31, 2005, while it had EBITDA of $48 million and operat- ing profit of $29.1 million ($35.3 million when adjusted for intangible amortization). Otis Spunkmeyer owns a coast-tocoast supply chain to its 62,000 customers and offers direct-store delivery through 52 nationwide sales centers. "Otis' product categories are complementary with our existing U.S. business in both retail and food service channels," said Owen Killian, chief executive officer of the IAWS Group, P.L.C. "The acquisition is an excellent fit that offers IAWS a strong platform for future growth in the U.S. market." IAWS will fund the acquisition, expected Continued on Page 10 Chicago Mercantile Exchange to acquire C.B.O.T. for $8 billion Story on Page 21 Michael Kirchner to General Mills in key baking supply role MINNEAPOLIS - Michael Kirchner has joined the Bakeries & Food Service Division of General Mills, Inc. as vice-president, general manager, bakery channels. Mr. Kirchner will oversee the division's bakery channels businesses, including in-store bakery, bakery ingredients, fresh bread solutions, convenient solutions team and wholesale sweet goods. Most recently, Mr. Kirchner was director of food service sales for SuperValu, Inc., Minneapolis, in the company's Consumer Foods Sales division. He joined SuperValu after spending six Continued on Page 48 CHICAGO - Chicago Mercantile Exchange Holdings Inc. (C.M.E.) said Oct. 17 it agreed to purchase CBOT Holdings Inc. (C.B.O.T.) for $8 billion in a move that will create a global derivatives exchange with average daily trading volume approaching 9 million contracts per day, representing approximately $4.2 trillion in notional value The combined company, to be named LATE CME Group Inc., a C.M.E./Chicago Board of Trade Co., is expected to transform global derivatives markets, creating operational and cost efficiencies for customers and exchange members, while delivering significant benefits to shareholders. Corporate headquarters of the combined organization will remain in Chicago. The transaction will result in the sale of Continued on Page 12 NEWS ORRVILLE, OHIO - The J.M. Smucker Co. has acquired the White Lily brand from C.H. Guenther and Sons for an undisclosed sum. White Lily branded products include allpurpose and specialty flours, cornmeal, muffin mixes, grits and frozen biscuits, with annual sales of approximately $33 million. The products will be co-packed for Smucker by C.H. Guenther at its Knoxville, Tenn., and Prosperity, S.C., facilities. "The acquisition of the White Lily brand further builds on the Continued on Page 8 Smucker buys White Lily brand inside THIS WEEK Minneapolis exchange celebrates 125th Large I.B.C. losses detailed 14 19 Ingredient Smallest world wheat stocks on record 49 Week sponsored by 50

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Milling & Baking News - October 24, 2006