Aurora sells cake mix division
its majority stake in cake mix manufacturer Duncan Hines to J.W.
Childs Associates.
US-based food group Aurora Foods has announced that it is to sell its majority stake in cake mix manufacturer Duncan Hines to J.W. Childs Associates. The $200 million (€173.7m) deal is part of a pre-negotiated bankruptcy plan, according to news agency Reuters.
Aurora says that it will use the proceeds from the sale of the 65.6 per cent equity stake to reduce its debt as well as for working capital purposes. Under the agreement, the group's existing $400 million subordinated debt will be converted into a combination of equity and cash.
The company has begun discussions with a number of financial institutions about the terms of its restructuring. J.P. Morgan Chase is continuing to provide Aurora with up to $30 million in accounts receivable financing.
Aurora Foods was formed to serve as a platform upon which to build a leading branded grocery products company through both strategic acquisitions and internal growth. The Company purchased the Mrs. Butterworth's brand of breakfast products from Unilever in December 1996.
In July 1997, the company acquired the Log Cabin brand of syrups from Kraft and in January 1998, Aurora expanded its brand portfolio with the acquisition of the Duncan Hines brand of baking mixes.
