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): June 4, 1999
INTERNATIONAL MULTIFOODS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-6699 41-0871880
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
200 East Lake Street, Wayzata, Minnesota 55391
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (612) 594-3300
Not applicable
(Former name or former address, if changed since last report)
Item 5. Other Events.
On June 4, 1999, International Multifoods Corporation (the
"Company") announced that it has sold its discontinued Venezuelan
agriculture and animal feeds business, Alimentos Super-S, C.A., to La
Caridad Group. See the Company's press release dated June 4, 1999,
attached hereto as Exhibit 99.1, which is incorporated by reference in
this Current Report on Form 8-K.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
99.1 Press release of International Multifoods Corporation
dated June 4, 1999.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
INTERNATIONAL MULTIFOODS CORPORATION
Date: June 4, 1999 By /s/ Dennis R. Johnson
----------------------------------
Dennis R. Johnson
Vice President and Controller
EXHIBIT INDEX
99.1 Press release of International Multifoods Corporation dated
June 4, 1999.
Exhibit 99.1
News Release
FOR IMMEDIATE RELEASE Contact: Jill Schmidt, (612) 594-3320, or
Tony Brausen, (612) 594-3385
International Multifoods Corporation
INTERNATIONAL MULTIFOODS SELLS
VENEZUELAN AGRO-BUSINESS
WAYZATA, Minn., June 4 - International Multifoods Corp. (NYSE: IMC)
today announced that it has sold its discontinued Venezuelan agriculture
and animal feeds business, Alimentos Super-S, C.A., to La Caridad Group,
a privately held integrated poultry producer based in Venezuela, for
$27.5 million in cash. The company will use the proceeds from the sale
to reduce the Venezuelan business's debt.
Alimentos Super-S, a division of MONACA, International Multifoods'
discontinued Venezuelan operation, had fiscal 1999 revenue of $117
million. It is a leading producer of feeds for poultry, pigs, cattle
and other animals in Venezuela. The division employs about 700 people
and has seven processing facilities throughout the country.
"The decision to divest the Venezuela operation was prompted
by our commitment to take the necessary actions to unlock shareholder
value and by our desire to sharpen the company's focus on serving the
foodservice industry in North America," said Gary E. Costley,
International Multifoods chairman, president and chief executive
officer. "This sale will result in an annualized improvement in
International Multifoods' Economic Value Added (EVA) of $2 million to $3
million."
Costley added that the company is in discussions to sell the
remaining Venezuelan operation.
Under terms of the transaction, La Caridad Group is acquiring the
shares of the agriculture and animal feeds business Alimentos Super-S,
which include the assets, such as facilities, equipment, trademarks and
working capital. The net book value of these assets was about $31
million. International Multifoods expects that this transaction will
result in a first-quarter charge to discontinued operations of
approximately $4 million.
MONACA, International Multifoods' discontinued Venezuelan operation
headquartered in Caracas, is now comprised of a consumer and commercial
foods business. The company is a leading manufacturer and marketer of
grain-based products in Venezuela, including consumer wheat flour,
commercial flour and baking mixes under the Robin Hood brand, consumer
corn flour under the Juana brand and oat cereal under the Lassie brand.
MONACA's consumer and commercial foods business had fiscal 1999
sales of $230 million. This remaining business employs approximately
2,000 people in Venezuela and has 11 mills and other processing
facilities and 11 warehouses throughout the country.
International Multifoods is strategically focused on serving the
foodservice industry in North America as a distributor and manufacturer.
The company also is a manufacturer and marketer of consumer foods in
Canada.
# # #
1999
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on current expectations or beliefs,
including, but not limited to, statements concerning the company's
operations and financial performance and condition. For this purpose,
statements that are not statements of historical fact may be deemed to
be forward-looking statements. The company cautions that these
statements by their nature involve risks and uncertainties, and actual
results may differ materially depending on a variety of important
factors, including, among others, the impact of competitive products and
pricing; market conditions and weather patterns that may affect the
costs of grain and other raw materials; changes in laws and regulations;
economic and political conditions in Venezuela, including inflation,
currency volatility, possible limitations on foreign investment,
exchangeability of currency, dividend repatriation and changes in
existing tax laws; the company's ability to complete the sale of the
Venezuela Foods business; fluctuations in foreign exchange rates; the
company's ability to realize the earnings benefits from the integration
of its distribution businesses; and other factors as may be discussed in
the company's Report on Form 10-K for the year ended Feb. 28, 1999, and
other reports filed with the Securities and Exchange Commission.
