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P&G to sell Duncan Hines
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December 8, 1997: 10:51 a.m. ET
Parent of Mrs. Butterworth acquires baking mix unit for undisclosed sum
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NEW YORK (CNNfn) - Procter & Gamble Co. said Monday it agreed to sell its Duncan Hines baking mix business to MBW Investors LLC, the parent company of Aurora Foods Inc. of Columbus, Ohio.
Financial terms weren't disclosed, and the agreement is subject to standard regulatory review.
The Cincinnati-based consumer marketing titan announced plans to sell Duncan Hines earlier this summer. The brand has annual sales of about $250 million.
Aurora Foods was formed in 1996 by Dartford Partnership, a San Francisco investment firm that specializes in the food and beverage industries; McCown De Leeuw & Co., a private investment firm that specializes in buying and building middle-market companies; and Fenway Partners, a New York investment firm.
Since its inception, Aurora has acquired Mrs. Butterworth's syrup and pancake mix from Unilever and Log Cabin syrup from Kraft, a unit of Philip Morris Cos. Following the acquisition of Duncan Hines, Aurora's annual sales will be about $450 million.
The sale includes the Duncan Hines trademark and manufacturing equipment, but not P&G's plant or employees.
The companies have agreed on a transition plan through early 1999. P&G also will continue to accept orders from retailers on Aurora's behalf through March 1998. No terminations will be caused by the sale. Most of the 300 people working on Duncan Hines will be re-deployed to other parts of P&G's food and beverage business.
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