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CNNfn after the bell
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December 15, 1998: 5:24 p.m. ET
Hershey to sell pasta business for $450M, Boise Cascade sets $11M charge
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NEW YORK (CNNfn) - Hershey Foods gave Wall Street the night to ponder the sale of its pasta business, releasing news of the multi-million dollar deal after hours Tuesday and alongside Boise Cascade's $11 million restructuring charge.
Hershey Foods Corp. (HSY) announced plans late Tuesday to sell its pasta business and six manufacturing plants to New World Pasta LLC for $450 million. The company said all employees in its pasta business will be offered jobs by New World.
At the same time, Boise Cascade (BCC) said it will take an $11 million charge against fourth quarter earnings to cover the costs of its restructuring plan. The efforts are expected to generate annual pretax savings of about $70 million by the end of 1999 and write-offs of $40 million, or 42 cents a share, after tax in the fourth quarter.
Wrapping up a previously announced deal, ICH Corp. (IH) also said it closed on its buyout of nearly all the assets of Lyon's Restaurants, Inc. Last year, the 73 acquired Lyon's restaurants generated total sales of approximately $117 million, for an average unit volume of approximately $1.6 million per location.
The total purchase price of the deal was $22.6 million.
CFM Technologies, Inc. (CFMT) also reported net sales for the fourth quarter ended Oct. 31, of $5.6 million, down dramatically from sales of $17.9 million a year-ago.
The company posted a loss of $3.4 million, or 43 cents per diluted share, compared with net income of $487,000, or 6 cents a share last year.
Late Tuesday, CMG Information Services, Inc. (CMGI) also posted first quarter earnings of $38.6 million, or $1.54 per diluted share, compared with profits of $2.7 million, or 12 cents per share, last year.
Computer consulting firm Cambridge Technology Partners Inc. (CATP) also said it will boost its stable of Microsoft-certified engineers and software developers to 1,000 over the next three years from 150 today as part of its new agreement with software giant Microsoft Corp. (MSFT).
Cambridge is betting on wider corporate use of systems based on Microsoft's Windows NT technology. The two companies said they would work jointly to develop and market NT-based business solutions for electronic commerce, data warehousing, financial trading and other areas. Terms of the deal were not announced.
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