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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): SEPTEMBER 25, 1998
INTERNATIONAL HOME FOODS, INC.
(Exact name of registrants as specified in their charters)
DELAWARE 001-13537 13-3377322
(State or other jurisdiction of (Commission File Number) (IRS Employer
incorporation) Identification No.)
1633 LITTLETON ROAD
PARSIPPANY, NEW JERSEY 07054
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (973) 359-9920
NOT APPLICABLE
(former name and former address, if changed since last report)
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ITEM 5 OTHER EVENTS
On September 25, 1998, the Company announced a plant consolidation plan. A
copy of the press release is attached hereto as an exhibit.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(C) EXHIBITS.
99.1 Press Release, dated September 25, 1998.*
* Filed herewith.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on their behalf by the
undersigned thereunto duly authorized.
INTERNATIONAL HOME FOODS, INC.
(Registrant)
/s/ N. MICHAEL DION
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N. Michael Dion
Senior Vice President and
Chief Financial Officer
Date: September 24, 1998
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EXHIBIT
NUMBER EXHIBIT INDEX
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99.1 Press Release, dated September 25, 1998.*
* Filed herewith.
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EXHIBIT 99.1
Media Contacts: Ellen Ciuzio
International Home Foods, Inc.
(973) 359-3876
Mark A. Semer or Roy Winnick
Kekst and Company
(212) 521-4802 or 4842
Investor Contact: Lynne Misericordia
International Home Foods, Inc.
(973) 359-3195
INTERNATIONAL HOME FOODS, INC. ANNOUNCES STEPS TO REDUCE COSTS
AND IMPROVE OPERATING EFFICIENCIES, AND RELATED ONE-TIME CHARGES
PARSIPPANY, N.J., September 25, 1998 -- As part of its strategy to reduce costs
and improve operating efficiencies, International Home Foods, Inc. (NYSE: IHF)
today announced a series of steps that include the closing of its Vacaville,
California and Clearfield, Utah facilities and the redeployment of the
production equipment from the closed facilities into the Company's remaining
operations. Reflecting these actions, the Company will record a one-time pre-tax
special charge of approximately $41 million in the third quarter of 1998,
approximately $30 million of which represents non-cash charges, primarily for
the write-down of property, plant and equipment to estimated net realizable
value. In addition, the Company anticipates cash charges of approximately $9
million for severance and related benefit costs for employees affected by these
actions, and approximately $2 million in facility closure costs.
IHF expects to close the Vacaville production facility in December 1998 and the
adjacent distribution center in the first quarter of 1999. Production of a
majority of the products currently manufactured at the Vacaville facility will
be shifted to other IHF facilities, mainly Milton, Pennsylvania. IHF will
outsource the production of tomato paste and will enter into a third-party
manufacturing agreement for the production of Ro*Tel(R) diced tomatoes, both of
which are currently manufactured at the Vacaville facility. The Clearfield, Utah
facility, where IHF currently manufactures Campfire(R) products, will be closed
in the first quarter of 1999. The manufacturing of these products will be
transferred to the Lakeville, Minnesota facility that was recently acquired as
part of the Grist Mill acquisition. The Company anticipates that it will incur
approximately $3 million of additional non-capitalizable expenses as the
transfer and installation of the relocated equipment occurs. It is expected that
the entire process will be completed by the end of 1999.
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In addition to the above-mentioned special charge, the Company also announced a
one-time, non-cash pre-tax charge totaling $78 million in the third quarter of
1998 related to the write-down of goodwill of its Polaner(R) fruit spreads brand
($30 million) and its Campfire(R) crisped rice snack bar brand ($48 million).
Both brands have been impacted by continued retail category sales declines,
which have further deteriorated in recent periods. The current and projected
sales trends and the resulting impact on the brands' future profitability have
impaired the valuation of their long-lived assets, necessitating an adjustment
to goodwill so that it approximates each brand's fair value.
C. Dean Metropoulos, Chairman and Chief Executive Officer of International Home
Foods, said: "The operational steps announced today were initiated after a
thorough review of IHF's facilities and, when fully implemented, are expected to
result in annualized pre-tax savings of approximately $18 million, excluding the
effect of the goodwill write-down. We regret the impact this decision will have
on the affected employees and are working hard to ensure that their transition
is as smooth as possible by providing certain separation benefits."
Statements contained in this press release which are not historical facts are
forward-looking statements. Such forward-looking statements are necessarily
estimates reflecting the best judgment of the party making such statements based
upon current information and involve a number of risks and uncertainties.
Forward-looking statements contained in this press release or in other public
statements of the parties should be considered in light of those factors. There
can be no assurance that such factors or other factors will not affect the
accuracy of such forward-looking statements.
International Home Foods, Inc. is a nationally prominent manufacturer,
distributor and marketer of food products. Its significant established brands
include Chef Boyardee(R) prepared foods, Bumble Bee(R) and Orleans(R) canned
seafood, PAM(R) cooking spray, Libby's(R) canned meats, Polaner(R) fruit spreads
and spices, Gulden's(R) mustard, Crunch `n Munch(R) glazed popcorn, Campfire(R)
marshmallows and crisped rice bars, Ro*Tel(R) tomatoes with green chilies,
Dennison's(R) chili and Ranch Style(R) and Luck's(R) beans.
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