Beef and pork producer IBP Inc said it has completed its cash tender offer to acquire the outstanding common stock of Foodbrands America Inc at a purchase price of $23.40 a share.
About 11,577,000 shares of the 12,465,017 of issued and outstanding shares of common stock of Foodbrands, or about 93%, were tendered. All of the shares were accepted for payment by IBP following completion of the tender offer on April 28.
Any Foodbrands shares not purchased in the tender offer will be acquired by IBP for $23.40 per share when the merger is completed. IBP said it expected the deal to be completed within the next few weeks.
Earlier, IBP reported 1997 first quarter sales of $3.1 billion, even with the same period a year ago. Earnings from operations fell to $52 million from $87 million last year. Net earnings declined to $32 million or $0.34 a share from $53 million or $0.55 in the 1996 first quarter.
"Our first quarter results -- while down from the record levels of a year ago -- showed meaningful improvement over the last three months of 1996," said Robert Peterson, IBP chairman and chief executive, in a statement.
Export sales during the first quarter fell 21% from last year's record high, but were up 19% over the last 3 months of 1996 as business in the Far East rebounded. Export sales accounted for 13% of IBP's net sales during the first quarter.
Earlier, IBP reported 1997 first quarter sales of $3.1 billion, even with the same period a year ago.
Earnings from operations fell to $52 million from $87 million last year. Net earnings declined to $32 million or $0.34 a share from $53 million or $0.55 in the 1996 first quarter.
"Our first quarter results -- while down from the record levels of a year ago -- showed meaningful improvement over the last three months of 1996," said Robert Peterson, IBP chairman and chief executive, in a statement.
First quarter pork dollar sales were down three percent from the fourth quarter of 1996, as a result of a slightly greater decline in live prices.
Because of tight hog supplies and competing processing capacity, production at IBP's pork plants continued to remain below optimum levels. This is expected to improve as hog supplies increase later this year, IBP said.
The company further increased production and capacity utilization in the eastern Corn Belt by adding a second shift of carcass production at its Logansport, Ind., pork plant.
IBP said wage incentive programs at several IBP plants, including Logansport, were enhanced. The enhancements were implemented to improve hiring and worker retention efforts. Given low levels of unemployment in many of the company's plant communities, these changes will help make the plants more competitive in attracting and retaining employees.
Also during the first quarter, IBP purchased more than 2.5 million shares of its own stock to meet the future needs of the company's employee stock benefit programs.
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