Broughton Foods and Suiza Foods to Merge

Broughton Foods Company (Marietta, OH) has signed a definitive agreement to merge with a wholly owned subsidiary of Suiza Foods Corporation (Dallas, TX).

Philip Cline, president and CEO of Broughton Foods Company, said, "Suiza Foods Corporation will enable the Broughton family of dairies to merge with the industry leader in the dairy business and bring our family dairies additional access to capital and new markets. Our vision was to integrate family dairies and gain related efficiencies and synergies. Suiza foods offered us the opportunity to merge with an entity that has a similar vision."

Gregg Engles, Suiza's chairman and CEO, commented: "The acquisition of Broughton reflects a continuation of Suiza's on-going strategy of growth through consolidating acquisitions in the dairy industry. This transaction will be particularly attractive in the long run, as it not only bolsters our position in several key markets, but extends our leadership in the attractive value-added UHT creamer and cultured dairy product categories as well. We expect to integrate Broughton into our existing regional clusters and national UHT operations throughout 1999."

Broughton Foods Company is a leading manufacturer and distributor of fresh milk and dairy products in Michigan, Ohio, West Virginia, Kentucky, Tennessee and parts of the eastern United States. The company operates through four divisions -- the Dairy Division, Foods Division, Southern Belle Division and London's Farm Dairy Division.

Suiza Foods has leading positions in the dairy and consumer goods packaging industries. Its principal holdings are in fluid dairy processing, refrigerated, shelf-stable and frozen dairy case products, and consumer packaging goods.