International Multifoods Expects FTC Review of General Mills-Pillsbury Merger to be Extended

International Multifoods Corp. today said that it expects the Federal Trade Commission's review of the proposed General Mills-Pillsbury merger and Multifoods' pending acquisition of the Pillsbury desserts and specialty products businesses to extend to the end of September.
Multifoods previously said that it expected its acquisition of the Pillsbury businesses to close by the end of August.

Based on this revised schedule, Multifoods now anticipates full-year fiscal 2002 earnings to be in the range of $1.25 to $1.35 per diluted share. This estimate includes a contribution of up to 10 cents per share from the acquisition for the company's current fiscal year ending March 2, 2002.

The company continues to expect the acquired businesses to add at least 40 cents per share to its earnings in the first full 12 months after closing.

The company also said that it continues to anticipate some favorable modifications to the original purchase agreement, which was announced on Feb. 5. The February agreement includes a long-term license to use the Pillsbury trademark in the desserts and baking mix category, the outright purchase of the Hungry Jack, Martha White and U.S. Robin Hood trademarks, and a five-year license for the Pillsbury trademark in the non-custom foodservice baking mix category. Combined, these businesses generate net sales of about $450 million, for which Multifoods agreed to pay approximately $305 million in cash, or less than 4.5 times EBITDA. The anticipated changes to the original purchase agreement are expected to be beneficial to Multifoods long term and have minimal effect on the purchase price. Details on the amended transaction terms will be provided when a final settlement with the FTC has been reache
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