TORONTO, Feb. 27 /CNW/ - Specialty Foods Group Income Fund (the "Fund")
(NEX: HAM.UN.H) today announced that Specialty Foods Group, Inc. completed the
sale of its Humboldt dry sausage division to Ancor Holdings, LP for
approximately US$33.0 million. The Fund indirectly holds an interest in
Specialty Foods Group, Inc. ("SFG" or the "Company").
Approximately US$17.8 million of the net proceeds of the sale will be
used to pay down all of the Company's bank debt and to secure letters of
credit. Other commissions, fees, taxes and escrows will be approximately
US$7.0 million, leaving approximately US$8.2 million available to be used for
operating requirements and other corporate purposes. None of the proceeds will
be used to make distributions to unitholders.
Specialty Foods Group Income Fund is an open-ended, limited purpose trust
established under the laws of the Province of Ontario, which indirectly holds
an interest in SFG. SFG is a leading independent U.S. producer and marketer of
premium branded and private-label processed meat products. SFG produces a wide
variety of products such as franks, hams, luncheon meats, and delicatessen
meats. These products are sold to a diverse customer base in the retail (e.g.
supermarkets) and foodservice (e.g., restaurants) sectors. SFG sells products
under a number of leading national and regional brands, such as Nathan's,
Field, Fischer's, Mickelberry's, and Scott Petersen as well as on a
This news release contains forward-looking statements. Such statements
involve known and unknown risks, uncertainties and other factors outside of
management's control. The Fund does not assume responsibility for the accuracy
and completeness of those forward-looking statements and does not undertake
the obligation to publicly revise these forward-looking statements to reflect
subsequent events or circumstances.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Steve Wright, Chief Financial Officer, Tel:
(757) 952-1200, Email: email@example.com, Website: