Mergers & Acquisitions & Joint Ventures - European food sector - Illustration

Eurofood, August 2, 2001

Mergers & Acquisitions & Joint Ventures

Buyer             Target         Country        Remarks

Beghin-Say        Acuar          France/        French sugar group
                  Guarani        Brazil         Beghin-Say
                                                announced the
                                                acquisition of
                                                Brazilian firm
                                                Acuar Guarani.
                                                Financial details
                                                of the deal
                                                were not
                                                disclosed.
                                                Beghin-Say is the
                                                number one French
                                                sugar producer and
                                                the number two in
                                                Europe.

SimplyOrganic     Express        UK             Organic home
                  Dairies                       shopping service
                                                SimplyOrganic has
                                                Teamed up with
                                                dairy firm Express
                                                Dairies to offer
                                                doorstep delivery
                                                of its products.
                                                Initially active
                                                in London, it is
                                                hoped the service
                                                will be rolled out
                                                nationally by
                                                spring 2002. The
                                                deal enables
                                                SimplyOrganic to
                                                offer its products
                                                to a wide range
                                                of people, and
                                                also enables
                                                Express Dairies to
                                                make better use
                                                Better use of its
                                                extensive delivery
                                                networks.

Markenfleischer   Weiser         Austria        Markenfleischer,
                                                an Austrian firm
                                                specialising in
                                                rescuing insolvent
                                                firms, has
                                                acquired the brand
                                                rights and recipes
                                                of bankrupt
                                                sausage maker
                                                Weiser.

Wessanen          Preisco/       Netherlands/   Dutch health food
                  Jentash        Canada         firm Wessanen has
                  Foods                         agreed to acquire
                                                Canadian firm
                                                Preisco/Jentash
                                                Foods. The
                                                Canadian firm
                                                produces
                                                speciality and
                                                health foods,
                                                and has annual
                                                sales of around
                                                C$42m (31.1m
                                                [European
                                                Dollar]).

IAWS              La Brea        Ireland/US     Irish firm IAWS
                  Bakery                        has further
                  Group                         expanded its
                                                North American
                                                operations
                                                following an
                                                agreement to
                                                acquire an 80%
                                                stake in
                                                Californian-based
                                                bakery
                                                La Brea Bakery
                                                Group. IAWS is
                                                paying US$55m
                                                (64m [European
                                                Dollar]) for
                                                the US concern, as
                                                well as assuming
                                                US$13.5m of debt.

Pfeifer &         Five           Germany/       German group
Langen            Polish         Poland         Pfeifer & Langen
                  sugar                         is to acquire 51%
                  plants                        stakes in five
                                                Polish sugar
                                                plants. The
                                                Polish Treasury
                                                has rethought its
                                                privatisation
                                                plans following
                                                its decision to
                                                cancel the sale
                                                of prize Polish
                                                firm Slaska to
                                                French sugar group
                                                Saint-Louis-Sucre,
                                                which has recently
                                                agreed to be
                                                acquired by German
                                                giants Sudzucker.

Casino            CBD            France/        French retailer
                                 Brazil         Casino has
                                                exercised its
                                                right to increase
                                                its equity
                                                capital in
                                                Brazilian firm
                                                Companhia
                                                Brasileira de
                                                Distribuicao
                                                (CBD). Casino
                                                now holds
                                                a total equity
                                                holding in CBD
                                                of 25.48%. CBD
                                                operates
                                                Brazilian
                                                supermarket chains
                                                Pao de Acuar,
                                                Extra and
                                                Barateiro, as well
                                                as electrical
                                                goods retailer
                                                Eletro.
                                                Competition in
                                                Brazil is fierce,
                                                particularly
                                                with compatriot
                                                rival Carrefour.

PepsiCo           Tasali         US/Saudi       US cola giant,
                  Snack          Arabia         which is almost
                                                as renowned for
                                                its snacks as its
                                                soft drinks, has
                                                acquired Saudi
                                                Arabian snack
                                                firm Tasali Snack
                                                from Savola Snack
                                                Foods. Tasali
                                                Snack is the
                                                leader of the
                                                salty snack
                                                market in Saudi
                                                Arabia. Assets
                                                of Tasali will be
                                                combined with
                                                PepsiCo's current
                                                venture in the
                                                Region Saudi
                                                Snack Foods.

Wal-Mart/         Venture        US             Both Wal-Mart and
K-Mart            Capital                       K-Mart, two
                  Partners                      giants of US
                                                retail, have
                                                bought out their
                                                respective venture
                                                capital partners
                                                that built their
                                                online operations
                                                with them.
                                                Originally, many
                                                retailers thought
                                                online operations
                                                would be spun-off.
                                                However, with
                                                recent
                                                casualties in
                                                the sector,
                                                both Wal-Mart
                                                and K-mart
                                                have decided
                                                to take full
                                                control over
                                                their online
                                                activities.

Compass           Vendpac        UK             The world's
                                                largest contract
                                                caterer Compass
                                                has purchased
                                                Venpac, from TM
                                                Group, the market
                                                leader in the UK
                                                for vending
                                                machines in a
                                                deal worth
                                                84m [pounds
                                                sterling] (137.
                                                4m [European
                                                Dollar]). Compass,
                                                already market
                                                leader in vending
                                                machines elsewhere
                                                in Europe and the
                                                US, now has a
                                                strong presence
                                                in the UK. Vendpac
                                                has annual sales
                                                of 58m [pounds
                                                sterling] and
                                                profits of 7m
                                                [pounds sterling].

Provimi           Nessabar-      France/        Provimi, formerly
                  Provimi        Bulgaria       part of the
                                                Franco-Italian
                                                firm Eridania
                                                Beghin-Say,
                                                has taken full
                                                control of
                                                Nessabar-Provimi
                                                in Bulgaria.
                                                Provimi
                                                operates in
                                                the animal
                                                nutrition sector.

Smithfield        Gorges/        US             US meat firm
Foods             Quik-to-                      Smithfield has
                  Fix Foods                     announced it is
                                                buying
                                                compatriot
                                                bankrupt firm
                                                Gorges/Quik-to-Fix
                                                Foods in a deal
                                                worth US$34m
                                                (38.9m [European
                                                Dollar]) cash.
                                                Gorges/
                                                Quik-to-Fix Foods
                                                has annual
                                                revenues of
                                                US$140m.

Sara Lee          Earthgrains    US             US diversified
                                                goods manufacturer
                                                Sara Lee has
                                                received
                                                anti-trust
                                                clearance from
                                                the US authorities
                                                to acquire
                                                compatriot baking
                                                giant Earthgrains
                                                in a US$2.8bn
                                                (3.2bn [European
                                                Dollar]) deal.

Heinz             Kagome         US/Japan       US firm Heinz has
                                                teamed up with
                                                Japanese company
                                                Kagome, a producer
                                                of ketchup, sauces
                                                and vegetable
                                                juices, to form
                                                a strategic
                                                alliance. The
                                                two firms will
                                                work to align
                                                their operations
                                                and product
                                                portfolios in an
                                                attempt to drive
                                                sales growth.

Zed Gum           Leaf Ireland   Ireland/       Dutch food
                                 Netherlands    ingredient and
                                                sugar group CSM
                                                has announced
                                                an agreement to
                                                sell Leaf Ireland
                                                to Zed Gum.

Alfonso and J     Domino Sugar   US/UK          UK sugar group
Pepe Fanjul                                     has finally ended
                                                its troubled
                                                presence in the US
                                                sugar market
                                                following the
                                                US$108m (123m
                                                [European Dollar])
                                                sale of Domino
                                                Sugar to an
                                                investment
                                                group. A further
                                                US$25m will be
                                                payable over
                                                the next four
                                                years dependent
                                                on the price of
                                                sugar, by the
                                                investment group
                                                headed up by
                                                Alfonso and J
                                                Pep Fanjul.

Cranswick         Continental    UK             Cranswick has
                  Fine Foods                    agreed a 11.7m
                                                [pounds sterling]
                                                (19.1m [European
                                                Dollar]) deal to
                                                acquire UK
                                                delicatessen
                                                producer
                                                Continental Fine
                                                Foods.