Keebler Completes Austin Quality Foods Acquisition

Keebler Foods Co., has completed the acquisition of Austin Quality Foods, Inc. The deal, announced in January (see related article), will strengthen Keebler's in single-serve bite-sized snacks and alternate retail channels.

Austin is the third acquisition for Elmhurst, IL-based Keebler in the past four years. Keebler acquired Sunshine Biscuits in 1996 and President Baking Company in 1998. The acquisition is valued at $250 million and will be financed with borrowings under Keebler's existing credit facilities.

"We are thrilled to be adding Austin's brands, product lines and manufacturing capabilities to Keebler," said Sam K. Reed, president and CEO of Keebler. "Austin is a very well-run company that has successfully focused on single-serve bite-sized snacks and the distribution of these products outside of supermarkets. These capabilities will complement Keebler's success in providing grain-based snack to consumers on-the-go and will provide us with enhanced growth opportunities in the key alternate retail channels."

Austin is headquartered in Cary, NC, and has annual sales of approximately $200 million. Products include cracker sandwiches under the Austin brand, Zoo brand animal crackers, SeAnimals brand cookies and Dolphins and Friends bite-sized cheddar cheese crackers.

Keebler is the second largest cookie and cracker manufacturer in the United States with net sales of $2.7 billion in 1999.

Edited by Bob Sperber