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Universal mulls unit sale
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May 25, 2000: 2:25 p.m. ET
Universal Foods explores options for yeast unit; will change company name
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NEW YORK (CNNfn) - Universal Foods Corp. announced Thursday it is exploring strategic options for its yeast business and also plans to change its name to reflect a new corporate identity.
Universal (UFC: Research, Estimates), a Milwaukee-based food flavoring and ingredients company, plans to divest of its Red Star Yeast & Products division to focus on its color and flavor division. Red Star had 1999 sales of $140 million and employs about 350 people. The company retained Salomon Smith Barney to review its options for Red Star.
"This action is the next logical step toward focusing our business in those areas offering the highest rates of growth in revenue and profits," Universal's chairman and CEO, Kenneth P. Manning, said in a statement. "We also recognize that Red Star's prospects for worldwide leadership in yeast can be best maximized through a combination with another business where it will be part of a core global strategy."
 The decision by Universal comes on the heels of discussions about the acquisition of Bestfoods (BFO: Research, Estimates), which revitalized consolidation talk in the food industry.
Universal also announced that it is combining its Dehydrated Products business with its Flavor business. The Dehydrated Products division concentrates on dried foods to add flavor, such as onions and garlic.
Manning said by the end of the year Universal will "truly be a new corporation."
Shares of Universal Foods rose Thursday afternoon 13/16 to 17-11/16. 
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Universal Foods
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