AssociatedBrit.Foods - Re Acquisition

RNS No 5729j
ASSOCIATED BRITISH FOODS PLC
20th October 1998

 
           Associated British Foods plc to buy SPI Holding Company
 
Associated British Foods plc ("ABF") today announced that it has entered into
an agreement to purchase SPI Holding Company ("SPI") from an investment group
whose principal investors are Harrowston, Inc. of Toronto, Ontario and Chase 
Capital Partners of New York.  SPI is a leading supplier of polyols in North
and South America.  Polyols are used as sweetening agents in food products
and as ingredients in personal care products such as toothpaste and
detergents.  SPI is also a world leader of magnesium and aluminium
pharmaceutical antacid active ingredients.  SPI has manufacturing locations
in the United States, France and Brazil.  SPI's revenues in 1998 are expected
to exceed $100 million.
 
ABF is a leading international food company and has a strong presence in the
United Kingdom, Australia, Asia and more recently the United States.  ABF has
acquired several North-American food businesses in the past few years as part
of a strategy to increase its presence in food ingredients and retail store
brands.  Most of these companies have been incorporated under ABF's AC Humko
Corp. subsidiary.  SPI will have close links with AC Humko and other ABF
units, but will operate as a separate ABF North American subsidiary.
 
Garry Weston, Chairman of Associated British Foods plc, stated "We are very
pleased to be able to acquire SPI, a strong leader in its ingredients
businesses.  SPI's businesses will fit in well with ABF's other food and food
ingredients businesses.  This acquisition further expands ABF's presence in
the important North American food, personal care and pharmaceutical
ingredients markets".
 
Completion of the sale is subject to certain conditions including obtaining
necessary consents and regulatory approvals.
 
 
END

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