UNITED STATES
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) August 5, 1998
THE QUAKER OATS COMPANY
(Exact name of registrant as specified in its charter)
New Jersey 1-12 36-1655315
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
Quaker Tower P.O. Box 049001 Chicago, Illinois 60604-9001
(Address of principal executive offices)
312-222-7111
(Registrant's telephone number, including area code)
Item 5 - Other Events
On August 5, 1998, The Quaker Oats Company, a New Jersey corporation and the
Registrant herein, signed a definitive agreement to sell its subsidiary,
Continental Coffee Products Company, to Sara Lee Corporation, a Maryland
corporation. The transaction is subject to certain conditions, including the
receipt of regulatory approval. Additional information regarding the
transaction is provided in the attached News Release dated August 10, 1998,
made a part hereof as Exhibit 1.
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.
THE QUAKER OATS COMPANY
(Registrant)
Date: August 14, 1998 /s/ Richard M. Gunst
Richard M. Gunst
Vice President and
Corporate Controller
EXHIBIT INDEX
Exhibit Exhibit Paper (P) or
Number Description Electronic (E)
(1) Sara Lee Corporation to Acquire (E)
Continental Coffee
EXHIBIT (1)
10:42am EDT 10-Aug-98 Corporate Release (S. Leigh Ferst 312-558-8464) SLE
Sara Lee Corporation to Acquire Continental Coffee From The Quaker Oats Company
Sara Lee Corporation to Acquire Continental Coffee From The Quaker Oats Company
CHICAGO, Aug. 10 -- Sara Lee Corporation (NYSE: SLE) today announced that it
has signed a definitive agreement to acquire the Continental Coffee Products
Company from The Quaker Oats Company (NYSE: OAT). With annual revenues of $149
million, Continental Coffee markets regular and gourmet coffee, tea, cappuccino
and cocoa to foodservice, convenience store and warehouse club customers
throughout the United States. Following receipt of all necessary approvals,
the transaction is expected to close by the middle of September 1998. Terms of
the transaction were not disclosed.
Continental Coffee employs approximately 280 people, primarily at its coffee
roasting facility in Houston, Texas. The company also operates coffee
equipment service centers in Pittsburgh and Miami. Continental Coffee's
products are marketed under the Continental, Cafe Continental, World's Best,
Snowman, Maryland Club, Churchill, Butternut and Gold Coast brand names. The
83-year-old company has been owned by Quaker Oats since 1988.
Upon closing the transaction, Continental Coffee will be managed by Superior
Coffee, a leading foodservice coffee supplier serving independent restaurants
and regional and national chains, hotels, hospitals and universities. Superior
Coffee is part of Sara Lee/DE, the Netherlands-based subsidiary of Sara Lee
Corporation responsible for its Coffee and Tea, and Household and BodyCare
lines of business.
Superior Coffee markets roast and ground coffee, liquid coffee concentrate,
instant cappuccino and tea to the foodservice industry, as well as gourmet and
flavored coffees to retail bean shops and cafes. With annual sales of more
than $500 million, Superior Coffee employs more than 1,300 people at locations
across the country. Its products are marketed under the Superior, Douwe
Egberts, Metropolitan, Java Coast, McGarvey and Paradise Tropical Tea brand
names.
"The acquisition of Continental Coffee expands Sara Lee's strong national
presence in the foodservice coffee business," said C. Steven McMillan,
president and chief operating officer of Sara Lee Corporation. "The
acquisition will expand our portfolio of foodservice coffee brands, increase
our production capabilities, and strengthen our ability to serve customers
nationwide, while minimizing planned capital expenditures."
Quaker Oats' Chairman, President and Chief Executive Officer Robert S.
Morrison said, "The Continental Coffee business has been in our portfolio since
1988, but is not a part of our strategic growth plans for the future. This
divestiture will allow us to further concentrate on building the consumer
brands in our foods and Gatorade businesses."
According to Frank L. Meysman, executive vice president of Sara Lee
Corporation and chairman of the Board of Management of Sara Lee/DE, "The U.S.
market has become increasingly important to our global Coffee and Tea division.
The acquisition of Continental Coffee creates an excellent opportunity to
accelerate the growth of our foodservice coffee business in the United States."
The Quaker Oats Company, headquartered in Chicago, is an international
marketer and manufacturer of grain-based foods and Gatorade thirst quencher.
Its major food brands include Cap 'n Crunch and Life cereals, Aunt Jemima mixes
and syrups, and Rice-A-Roni and Near East side dishes.
Sara Lee Corporation is a global consumer packaged goods company with more
than $20 billion in annual revenues. Its leading brands include Sara Lee,
Douwe Egberts, Hillshire Farm, Hanes, Coach, and Playtex.
SOURCE Sara Lee Corporation
-0- 08/10/98
/CONTACT: Media, Jeffrey Smith, 312-558-8727, or Analysts, S. Leigh Ferst,
312-558-8464, both of Sara Lee Corporation; or Media, Karen Savinski, 312-222-
7397, or Analysts, Margaret M. Eichman, 312-222-7818, both of The Quaker Oats
Company/
First Call Corporation - all rights reserved. 617/345-2100
END OF NOTE
