Baldwin Sells Dry Food Blend Biz
June 8/Shelton, Conn./Press Release -- Baldwin Technology Company Inc. has sold Oxy-Dry Food Blends Inc., a U.S. food blending and packaging business, to CPC Dry Pack Inc., a contract manufacturing company.
In April 2011, Baldwin announced a planned exit of this non-core food blending and packaging business, classified Oxy-Dry Food Blends as discontinued operations and recorded certain third quarter charges. Additionally, the company had announced its expectation to record an additional $3 million charge in the current fourth quarter related primarily to a continuing Oxy-Dry Food Blends lease obligation in Addison, Ill., and associated employment level reductions.
Under the terms of this transaction, the company has fully transferred the lease obligation to CPC Dry Pack Inc. and will no longer need to record the related fourth quarter charge.
Baldwin president and CEO Mark T. Becker said, “We are pleased to have successfully consummated this stock sale just two months after designating this operation as discontinued operations. As previously noted, the food business was acquired in 2006 as part of our purchase of the Oxy-Dry group of companies. This non-core business did not have the scale to be successful as a standalone food operation within Baldwin but can add value to the buyers mainly through synergies in consolidation with their existing Chicago, Ill., area operations. Not included in the sale are our Oxy-Dry graphic arts powders brand and products which are a growing part of our expanding consumables business. We expect to provide uninterrupted service to our powders customers during a brief transition period” Becker concluded.
From the June 8, 2011,Prepared Foods' Daily News