Specialty Foods Group Completes Sale of Dry Sausage Division
February 28, 2008
Meat company, Specialty Foods Group, has completed the sale of its Humboldt dry sausage division to financial consultant Ancor Holdings for approximately $33 million.
The Specialty Foods Group Income Fund indirectly holds an interest in Specialty Foods Group. The company said that $17.8 million of the net proceeds of the sale will be used to pay down all of the company’s bank debt and to secure letters of credit.
The company also said that other commissions, fees, taxes and escrows will be approximately $7 million, leaving approximately $8.2 million available to be used for operating requirements and other corporate purposes. The company said that none of the proceeds will be used to make distributions to unitholders.