MINNEAPOLIS, Sept. 18 /PRNewswire-FirstCall/ -- U.S. Bancorp Piper
Jaffray, a leading mergers and acquisitions (M&A) advisor, served as exclusive
financial advisor to International Multifoods Corporation (IMC) in the
$180 million sale of its distribution business to an affiliate of Wellspring
Capital Management LLC, a private equity investment firm. The transaction was
structured as a stock sale with a 338h(10) election for tax purposes and
closed on September 9, 2002.
Headquartered in Minnetonka, Minn., IMC sold its distribution business,
which consists of Denver-based Multifoods Distribution Group, Inc. (MDG) and
Hartford-based Better Brands, Inc. MDG is a distributor of food and food-
related products to limited-menu restaurants, independent pizza restaurants
and vending operators in the United States. MDG's vending distribution
business is the largest in the United States and operates under the VSA name.
Better Brands, Inc. is a leading broadline foodservice distributor in the
Northeastern United States.
We are thrilled to have had the opportunity to represent our longtime
client, IMC, in this transaction, said Tom Halverson, principal in U.S.
Bancorp Piper Jaffray's consumer investment banking group.
of the distribution business completes the evolution of IMC from a diversified
food holding company to a focused food manufacturer with market-leading retail
brands and a substantial foodservice presence.
Closing the sale of the distribution business is also important because
it provides IMC with the financial flexibility to invest more heavily in its
branded food manufacturing platform, said Glenn Gurtcheff, managing director
and co-head of U.S. Bancorp Piper Jaffray's middle market mergers and
IMC is now poised to take full advantage of an
outstanding market opportunity in a rapidly consolidating industry segment.
About International Multifoods Corporation
International Multifoods is a manufacturer and marketer of branded
consumer foods and foodservice products in North America. The company's food
manufacturing businesses have combined net sales of approximately $1 billion.
Multifoods' brands include Pillsbury® desserts and baking mixes; Hungry
Jack® pancake mixes, syrup and potatoes; Martha White® baking mixes and
ingredients; Robin Hood® flour and baking mixes; Pet® evaporated milk and
dry creamer; Farmhouse® rice and pasta side dishes; Bick's® pickles and
condiments in Canada; Softasilk®, a premium cake flour; Red River® hot
flax cereal; and Golden Temple®.
About Wellspring Capital Management LLC
Wellspring Capital Management LLC is a New York-based private equity firm
with over $350 million under management. The firm is focused on acquiring
companies where it can realize substantial value by contributing management
expertise, innovative operating and financing strategies and capital.
About U.S. Bancorp Piper Jaffray:
U.S. Bancorp Piper Jaffray, a subsidiary of Minneapolis-based
U.S. Bancorp (NYSE: USB), provides a full range of investment products and
services to businesses, institutions and individuals. The company's
investment banking business has grown significantly in the last several years
by focusing on the needs of growth companies in the health care, technology,
financial institutions, consumer and manufacturing and services sectors. U.S.
Bancorp Piper Jaffray has a national reputation for its expertise in
fundamental research, equity and debt financing and mergers and acquisitions
advisory. U.S. Bancorp offers a comprehensive range of financial solutions
through U.S. Bank, U.S. Bancorp Asset Management, U.S. Bancorp Investments and
U.S. Bancorp Piper Jaffray.
Nondeposit investment products are not insured by the FDIC, are not
deposits or other obligations of or guaranteed by U.S. Bank National
Association or its affiliates, and involve investment risks, including
possible loss of the principal amount invested. Securities products and
services are offered through U.S. Bancorp Piper Jaffray Inc., member SIPC and
NYSE, Inc., a subsidiary of U.S. Bancorp. (5/99-0679)
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SOURCE U.S. Bancorp Piper Jaffray
/CONTACT: Dana Wade, Public Relations, of U.S. Bancorp Piper Jaffray,
/Web site: http://www.piperjaffray.com /
CO: U.S. Bancorp Piper Jaffray; International Multifoods Corporation;
Wellspring Capital Management LLC; Multifoods Distribution Group, Inc.;
Better Brands, Inc.
IN: FIN FOD
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7061 09/18/2002 13:03 EDT http://www.prnewswire.com