Heinz Sells Ethnic Business

NEW YORK - Jan 17/06 - SNS -- H.J. Heinz Company's HP Foods business will sell its Ethnic Foods business to Associated British Foods plc group for undisclosed terms.

The company said the sale allows the company to remain focussed on the three core categories where Heinz is a sector leader: ketchup, condiments and sauces; meals and snacks; and infant nutrition. Heinz acquired HP Foods to focus on three sauce brands: Lea & Perrins(R), HP(R) sauces and a perpetual license to market the rapidly growing Amoy(R) Asian sauces brands in Europe.

The HP Foods Ethnic Food business supplies a wide range of owned and agency brands to the Chinese, Indian and Thai restaurant sector, as well as specialist retailers. These include Rajah, Green Dragon, Lotus, Maharajah, Cathay and Dynasty.

The proposed sale to ABF will include the transfer of 30 employees based in Europe including the UK. The UK Competition Commission, currently investigating Heinz's acquisition of HP, has approved the proposed sale. The sale should be completed in the next two months.