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Heinz in Borden buy
June 6, 2001: 6:59 p.m. ET

Maker of ketchup adds Classico pasta sauces, Wyler's bouillon from Borden
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NEW YORK (CNNfn) - H.J. Heinz Co. agreed Wednesday to acquire the pasta sauce, dry bouillon and soup business of Borden Foods Corp. for more than $270 million.

Financial terms were not announced. Pittsburgh-based Heinz (HNZ: down $0.08 to $43.20, Research, Estimates) will add such popular brands as Classico pasta sauces, Wyler's bouillon and soups, and Mrs. Grass traditional dry soup mixes.

Classico is the top premium pasta sauce in the United States, while Wyler's holds a 36 percent share of the U.S. bouillon market.

"They fit very well with our tomato-based expertise and will enable us to further satisfy growing consumer demand for flavor and taste solutions," said Heinz Chairman William Johnson in a statement.

Heinz brands include StarKist tuna, Ore-Ida potatoes, 9-Lives cat food and Heinz Ketchup.

The transaction includes Borden production facilities in Pennsauken, N.J., and Northbrook, Ill. Aggregate annual sales of the businesses are about $270 million, Borden said in a statement.

Columbus, Ohio-based Borden plans to continue running its remaining businesses and will continue to engage in discussions for strategic alternatives regarding its other units, the company said.

The Heinz purchase, which is still subject to closing conditions, is expected to be completed in three months. Goldman Sachs & Co. served as financial adviser to Borden. graphic


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