H. J. Heinz Company (NYSE:HNZ) announced today that it is nearing completion of the acquisition of CSM Food Division of CSM Nederland NV of Diemen, near Amsterdam, for Euro$425 million (approximately US$391 million). The companies have completed the required consultations with the relevant trade unions and works councils and received their consent, as required by Dutch law. Additionally, the Competition Authority of the European Union in Brussels approved the transaction on February 23, 2001. 

"We are pleased with the addition of CSM's world-class food brands and businesses which are an excellent complement to our growing international portfolio," noted Heinz Chairman, President and Chief Executive Officer William R. Johnson. "This acquisition makes us the second-largest food company in the Netherlands, gives us significant scale in Northern Europe, and extends our business into the dry soup market and fast-growing sports drinks." 

CSM Food Division, with annual sales of more than Euro$350 million (approximately US$322 million), is one of the leading food companies in the Benelux (Belgium, the Netherlands, Luxembourg) region. It holds number-one and number-two brands in each of the regions and comprises five units: Honig Merkartikelen bv, HAK bv, Koninklijke de Ruijter bv and Foodmark, all in the Netherlands; and Anco in Belgium.

The company's brands include the Honig(R) brand of soups, sauces and pasta meals; HAK(R) brand vegetables packed in glass; KDR (Koninklijke de Ruijter)(R) brand sport drinks and fortified juices; and KDR(R) brand spreads and sprinkles, which are traditional toppings for breakfast breads and toasts. 

CSM products are sold not only in retail supermarkets and shops but also to restaurants and foodservice customers. 

Heinz currently operates its primary European condiments factory in Elst, the Netherlands, and has been a leading food manufacturer in that country since 1958. 

"This acquisition provides a solid foundation for our continued growth in Europe," explained David R. Williams, Heinz Executive Vice President -- President and CEO for Europe & Africa. "The purchase of the CSM Food Division is the latest in a series of strategic acquisitions in Europe that includes the United Biscuits frozen food division, and Sonnen Bassermann(R) soups. Europe represents
approximately one-third of Heinz's global sales, and future growth will come from expansion of markets, the introduction of new products and acquisitions." 

Peter Bennemeer, Heinz Area Director -- North Europe and a native of the Netherlands, is responsible for the integration of the Heinz and CSM Food Division. 

"The CSM product range is a perfect addition to our existing businesses," said Mr. Bennemeer. "The KDR(R) spreads, for example, complement our Heinz(R) Sandwich Spreads. Honig(R) dry soups round out our canned sauces and soups businesses and HAK(R) gives us a range of vegetables. The foodservice business is important to both companies and the Anco operations strengthen our position in the Belgian market." 

In Benelux, Heinz is known for its leading Heinz(R) brands of ketchup, sandwich spread, tomato frito (cooking sauce) and Spagheroni(R) brand spaghetti sauce. Its Elst factory produces more than 145,000 tons of products annually. 

The transaction was originally announced in a news release on December 20, 2000. 

With sales over US$9 billion, H. J. Heinz Company is one of the world's leading marketers of branded foods to consumers everywhere, whether in supermarkets, restaurants or on the go. Its 50 companies operate in some 200 countries, with more than 20 power brands, including the Heinz(R) brand with nearly US$3 billion in annual sales. Among the company's famous brands are Heinz(R),
StarKist(R), Ore-Ida(R), 9-Lives(R), Wattie's(R), Plasmon(R), Farley's(R), Smart Ones(R), Bagel Bites(R), John West(R), Petit Navire(R), Kibbles `n Bits(R), Pounce(R), Pup-Peroni(R), Orlando(R), ABC(R), Olivine(R), Juran(R) and Pudliszki(R). Heinz also uses the famous brands Weight Watchers(R), Boston Market(R) and Linda McCartney(R) under license. Information on Heinz is available at http://www.heinz.com.  

Company news release
P2013