Milling & Baking News - December 16, 2008 - 9

Business

Lance and Kellogg acquire Archway,
Mother's Cake and Cookies assets
Continued from Page 1

and will not be liable for any of Archway's debts, unless included in the
purchase agreement. The transaction
closed on Dec. 8.
"We're excited about this acquisition," said David V. Singer, president
and chief executive officer of Lance,
Inc. "Archway was founded in the
1930s and has built solid market
share in its niche of soft, home-style
cookies. Archway is an excellent addition to our growing portfolio of
consumer preferred niche brands. We
are looking forward to reopening the
Ashland, Ohio, production facility,
where we intend to produce Archway
cookies. This facility will also provide
the capacity to support growth in our
existing business and capabilities that
will broaden the products we can offer our private brands customers,
thus supporting our growth goals for
our non-branded business."
Lance said it does not plan to reopen Archway's Battle Creek facility.
Headquartered in Charlotte, N.C.,
Lance manufactures and markets
snack foods throughout much of
the United States and other parts

of North America. The
company's products include sandwich crackers and cookies, potato
chips, crackers, cookies,
other snacks, sugar wafers, nuts, restaurant style
crackers and candy under the Lance, Cape Cod
and Tom's brands. Lance
has manufacturing facilities in
North Carolina,
Iowa, Georgia,
Massachusetts,
Texas, Florida,
Arkansas
and
Ontario.
Meanwhile, The Kellogg Co. reached
agreement to acquire the trademarks
and recipes of Mother's Cake & Cookie Co., a regional brand with a loyal
consumer following in the western
United States, for $12.1 million. Lance
was among the bidders that Kellogg
beat out for the Mother's business.
"Mother's Cookies' brands are
a complementary fit to our existing cookie portfolio," said David Mackay, president and c.e.o.,

Parrish & Heimbecker to acquire
Dover outstanding shares
BURLINGTON, ONT. - Parrish & Heimbecker, Ltd., which
operates a variety of subsidiary
agriculture-based companies, has
reached agreement to acquire all
the outstanding common shares
of Dover Industries Ltd. that it
does not already own. Currently,
Parrish & Heimbecker owns 25%
of Dover.
Under terms of the agreement,
Parrish & Heimbecker would pay
C$19.25 per common share to Dover shareholders, representing
a 39% premium to Dover 's closing price on the Toronto Stock
Exchange on Dec. 4. The all-cash
transaction, which values Dover
at about C$132 million ($102 million), will be voted on by Dover
shareholders at a special meeting expected to take place in late
January.
"P&H has been a shareholder

bakingbusiness.com / world-grain.com

and wheat supplier of Dover for
many years," said John Heimbecker, chairman of the special
committee of the board of P&H.
"We are thrilled at the prospect
of putting these two great companies together."
Founded in 1909, Parrish and
Heimbecker is involved in many
aspect of agri-business, including
grain procurement and merchandising, flour milling, animal feed
production, poultry farming and
poultry processing. The companies
associated businesses include NewLife Mills Ltd., P&H Foods, Golden
Valley Farms Inc., Cook's, Ellison
Milling Co., and Parrheim Foods.
Dover Industries operates flour
mills in Ontario, Nova Scotia, Saskatchewan and Quebec, as well as
a paper products division and ice
cream cone and plastics plant in
Ontario. MBN

Kellogg. "We will use our brandbuilding and innovation expertise, our
understanding of the cookie category
as well as our existing distribution infrastructure to
grow the Mother's Cookies business."
Kellogg said it plans
to reintroduce many
of Mother 's Cookies
brands, including its
iced animal crackers,
sandwich cookies and
wire cut cookies. The
products
will
be managed as
part of Kellogg's
Snacks business
unit, which includes
Chips
Deluxe, Fudge
Shoppe, Sandies
and Murray Sugar Free.
As part of the acquisition, Kellogg did not take on any plants or
employees. MBN

Judge clears I.B.C.
to exit bankruptcy
KANSAS CITY - U.S. Bankruptcy
Judge Jerry Venters on Dec. 5 approved
the reorganization plan set forth by Interstate Bakeries Corp. In doing so, he
has paved the way for the wholesale
baker to exit bankruptcy, potentially
as early as Dec. 15.
The plan, which provides for $469
million in new loans from a group of
lenders including Silver Point Capital
LP as well as a $130 million investment from Ripplewood Holdings, still
has one hurdle to clear - two lenders
that tentatively agreed to the financing
have not signed the final draft.
The plan had been mailed out to
I.B.C.'s creditors to vote on in November. MBN

J&J Snack Foods
raises dividend 5.4%
PENNSAUKEN, N.J. - The board
of directors of J&J Snack Foods
Corp. has declared a regular quarterly cash dividend of 9.75c per
share of its common stock payable
on Jan. 7, 2009, to shareholders of
record as of the close of business on
Dec. 15, 2008. The cash dividend of
9.75c per share represents a 5.4% increase from the previous quarterly
dividend rate of 9.25c per share. MBN
Milling & Baking News

December 16, 2008 / 9

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Milling & Baking News - December 16, 2008

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