Keebler to Acquire Austin Quality Foods

Keebler Foods Company (Elmhurst, IL) has reached an agreement to acquire Austin Quality Foods, Inc. (Cary, NC). Austin is a producer and marketer of single serve baked snacks, including cracker sandwiches and bite-sized crackers and cookies. Austin has annual sales of approximately $200 million.

"We are thrilled to be adding Austin's product lines and manufacturing capabilities to Keebler," said Sam Reed, president and CEO of Keebler. "Austin is a very well-run company that has successfully focused on single-serve and bite-sized products. These capabilities will complement Keebler's product lines and sales channels in the biscuit industry."

"Keebler is a great company and a perfect fit for Austin," added Bill Burkhardt, president and CEO of Austin Quality Foods. "We are excited about this next step in the growth of Austin. Keebler will provide many new opportunities for our products and associates."

The transaction is expected to close in February, subject to customary conditions including the Hart-Scott-Rodino waiting period. Keebler will finance the acquisition, valued at $250 million, with borrowings under its existing credit facilities. Keebler expects the acquisition will be accretive to earnings by the end of 2000.

Edited by Scott Hegenbart