Bimbo Bakeries and Four-S Baking Announce Merger

Bimbo Bakeries U.S.A. (Los Angeles, CA) has entered into negotiation to acquire Four-S Baking Co. (formerly Good Stuff Food Co.). The proposed agreement joins Four-S Baking Co.'s Weber's white bread, restaurant and institutional business and comprehensive Southern California retail chain distribution network with Bimbo's global resources and full line of branded products, including the line of Mrs. Bairds products in the Texas market.

Four-S, which is jointly owned by American Capital Strategies and an employee stock ownership plan ("ESOP") owned by Four-S employees, has grown dramatically over the past two years since its acquisition of the rights to the Weber's brand in October 1997. As a result, Four-S has an established presence in a broad range of Southern California retail outlets.

Bimbo Bakeries U.S.A. is the American branch of Grupo Industrial Bimbo s.a. de c.v., a Mexico City-based baked goods manufacturer with annual revenues of $2.5 billion. The company operates more than 80 plants and employs more than 31,000 workers worldwide.

Both companies were optimistic regarding the opportunities offered by the acquisition. Harlan Rimer, President and CEO of Four-S, noted that "the acquisition should be great for Four-S employees, great for Bimbo and great for the marketplace." The acquisition provides Bimbo with a comprehensive product line that includes white bread, variety breads, buns, dinner rolls, tortilla products, salty snacks and a full line of pastries.

Bimbo and Four-S hope to finish negotiation shortly, and close by Mar. 31, 1999.