Heinz to sell New Zealand poultry processor, Tegel Foods

23/12/05 H.J. Heinz Company has announced that it has signed a definitive agreement to sell its Auckland, New Zealand subsidiary, Tegel Foods, to Pacific Equity Partners (PEP). Headquartered in Sydney, Australia, PEP is a major Australasian private equity firm.

Tegel Foods is a leading processor of fresh poultry and animal feeds. It markets Tegel(R) brand chilled and frozen chicken and turkey products and operates processing plants, feed mills and livestock operations throughout New Zealand. Tegel was purchased by Heinz in 1992 as part of a transaction to acquire Wattie's.

Heinz executives discussed the potential sale of a number of non-core businesses, including Tegel, during meetings and conference calls with investors in August, September and November. Heinz has completed the divestitures of HAK(R) vegetables in the Netherlands and its seafood business in Israel, and is finalizing the sale of its stake in The Hain Celestial Group, Inc. in the U.S.

Closing of the transaction is subject to approval of the New Zealand Overseas Investment Office. Financial terms were not disclosed.

H.J. Heinz Company, offering "Good Food, Every Day(TM)," is one of the world's leading marketers and producers of branded foods in ketchup, condiments, sauces, meals, soups, seafood, snacks, and infant foods. Heinz satisfies hungry consumers in every outlet, from supermarkets to restaurants to convenience stores and kiosks. Heinz is a global family of leading brands, including Heinz(R) Ketchup, sauces, soups, beans, pasta and infant foods (representing nearly one-third of total sales or close to $3 billion), HP(R) and Lea & Perrins(R), Ore-Ida(R) french fries and roasted potatoes, Boston Market(R) and Smart Ones(R) meals, and Plasmon(R) baby food. Heinz's 50 companies have number-one or number-two brands in 200 countries, showcased by Heinz(R) Ketchup, The World's Favorite Ketchup(TM).

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