Lehman Seeks Heinz Seafood

NEW YORK - Feb 1/06 - SNS -- H.J. Heinz Company received an offer and is in advanced and exclusive negotiations with Lehman Brothers Merchant Banking for the sale of its European Seafood business.

A transaction would require an opinion from the French Works Council and communications with other relevant employee representatives in Europe. A transaction would also be subject to customary DU competition review and approval. Terms of the offer were not disclosed.

William R. Johnson, Heinz Chairman, President and Chief Executive Officer commented: "The proposed sale of our European Seafood business is consistent with our global growth strategy to drive sales and earnings in three core categories and follows successful initiatives this year to divest other non-core businesses such as HAK vegetables, Hain Celestial and our pending sale of Tegel poultry. Over the past three years, Heinz has derived multiple benefits from a similar plan to simplify its portfolio in North America and the Company believes it can improve performance in Europe through a similarly more focused portfolio of strong brands."

A sale would include brands such as John West, a leading brand of canned tuna and seafood in the UK, Ireland and The Netherlands; Petit Navire, the top canned tuna brand in France; and Mareblu in Italy and four seafood processing facilities. The European Seafood business has approximately 5,000 employees and annual sales of over EUR 400 million and produces more than 400 million cans of seafood products annually.

The major seafood processing facilities included in the offer are located in The Seychelles, where the plant has approximately 2,400 employees; and in Ghana, where there are 1,800 employees. Other manufacturing facilities include Douarnenez, France and Peniche, Portugal.