Heinz acquires leading sauce brands from Groupe Danone

17/08/05 H.J. Heinz Company has announced that it has successfully completed its acquisition of the HP Foods Group from Groupe Danone S.A. for GBP 470 million (approximately US$820 million) in cash. The transaction includes leading culinary brands such as Lea & Perrins(R), the world's number-one Worcestershire Sauce, HP(R) sauces and a perpetual license to market the rapidly growing Amoy(R) Asian sauces brands in Europe. This acquisition enhances and expands Heinz's global condiment and sauces business by adding popular brands. Last year, the HP Foods Group had worldwide annual sales of approximately $300 million. Heinz and Groupe Danone announced their definitive agreement on June 20, 2005. The three larger brands included in the transaction are marketed primarily in the United States, Canada and the United Kingdom, where the transaction instantly elevates Heinz to one of the leading marketers of sauces in the U.K.

The transaction includes three factories, two in the U.K. and one at Fair Lawn, New Jersey, which together with its Head Office in London employ a total of approximately 400 people. Heinz will not make any decisions regarding the future of the HP Foods facilities until it completes a comprehensive review in several months.

Heinz Chairman, President and Chief Executive Officer William R. Johnson said he believes the transaction is a "win-win" for consumers and Heinz, the world's leading manufacturer of ketchup.

Heinz has reiterated that it expects the transaction to be accretive to the Company's earnings in Fiscal Year 2007, which begins on May 4, 2006. Johnson said that Heinz aims to expand global sales of the HP(R), Lea & Perrins(R) and Amoy(R) brands by leveraging the company's global retail and foodservice distribution and marketing capabilities.

Heinz was advised on the transaction by UBS LLC and Clifford Chance LLP.

The Lea & Perrins(R) brand is the world's number-one Worcestershire Sauce and the leading brand in the United States, Canada and the U.K. The HP(R) brand of savory sauce is a favorite in both Canada and the U.K.

The HP(R) name (which stands for Houses of Parliament) has long been one of Britain's most popular savory table sauces.

Lea & Perrins(R) is truly an historic global brand. The famous Worcestershire Sauce has literally traversed the globe since 1837 when it was served on the tables of ocean liners that travelled in and out of British waters.

Today, the Lea & Perrins(R) and HP(R) brand sauces maintain their acclaim and are regularly featured as essential ingredients in contemporary recipes created by celebrity chefs.

The Amoy(R) brand of Asian varieties is popular in more than 40 countries. The line, which was first created in China in 1908, continues to expand and includes ever-popular soy and stir-fry sauces and noodles.