General Mills Divests Federalsburg Manufacturing Facility to Kraft

The transaction is expected to be completed during General Mills fourth quarter, which ends May 31. As part of the agreement, approximately 85 hourly and salaried employees will join Kraft Foods. Details of the purchase were not disclosed.

29 Apr 2010 --- General Mills has signed an agreement to divest the manufacturing facility, land and assets of the Federalsburg, Md., plant to Kraft Foods. The facility produces bread crumb products used in Stove Top stuffing.

The transaction is expected to be completed during General Mills fourth quarter, which ends May 31.  As part of the agreement, approximately 85 hourly and salaried employees will join Kraft Foods.  Details of the purchase were not disclosed.

General Mills has operated the business and the facility since 2001 when the business was acquired as part of the Pillsbury acquisition.

"Acquiring this facility provides us with a cost-effective supply of a key ingredient, bread crumbs, for our iconic Stove Top stuffing brand," said Cindy Waggoner, Vice President, Operations, Kraft Foods Grocery Business. "This acquisition will ensure we continue receiving the same high-quality ingredients we require for our Stove Top brand, with no interruptions to our supply. We welcome these employees and this plant to the Kraft Foods family."

Stove Top stuffing is the leader in the stuffing mix category. Introduced in the early 1970s, it was the first stuffing mix to contain all the ingredients needed to prepare stuffing – vegetables, seasonings, herbs, spices and baked stuffing crumbs – providing more convenience for consumers.