INTERPUBLIC SELLS NFO RESEARCH
In an effort to further reduce debt, Interpublic Group plans to sell its NFO research unit to Taylor Nelson Sofres, a provider of marketing research and information services, in a cash and stock deal worth $435 million.
Under the terms of the deal, Taylor Nelson Sofres will pay Interpublic $400 million in cash, $25 million in stock and another $10 million in cash one year after the close of the transaction this summer, according to news reports. The company expects to realize an accounting gain of $100 million in the deal. Interpublic purchased NFO in April 2000 for about $624 million.
CONCESSIONS OPEN DOOR FOR NESTLÉ AND DRYERS
Nestlé SA may be close to finalizing a deal to acquire Dreyers's Grand Ice Cream, Inc. The Federal Trade Commission dropped major objections to the deal after the two companies agreed to sell off some of their premium ice cream brands and distribution assets to CoolBrands International, Inc. in Ontario, Canada. In March, the FTC moved to block the deal, alleging that the merger would hurt competition and boost ice cream prices for premium Nestlé brands. Last summer, Switzerland-based Nestlé announced it planned to increase its stake in Oakland, CA-based Dreyer's from 23% to 67% as part of a $2.8 billion deal that would eventually lead to full ownership (August 2002 PROMO).
EQUITY FIRM NETS BUMBLE BEE
New York City-based private equity firm Centre Partners purchased Bumble Bee Seafoods from ConAgra Foods, Omaha. Bumble Bee, which generates $500 million in annual revenues, will retain its San Diego headquarters and look to expand through acquisition. ConAgra bought Bumble Bee in 2000 as part of a $2.9 billion deal with International Home Foods but has been selling off commodity products to focus more closely on packaged foods.
