ABF Buys Unilever's Mexican Brands

LONDON - Mar 9/04 - SNS -- Associated British Foods plc (ABF) has agreed to buy Unilever’s food oils and fats brands in Mexico for US$ 110 million in cash.

ABF will manage the Mexican business through its US subsidiary ACH Food Companies (ACH). Completion is subject to Mexican regulatory approvals.

The purchase adds Capullo, the Mexican market’s leading premium canola oil brand, to ACH's North American portfolio. ACH expects the purchase will allow it to extend its current Mazola business in North America with the addition of the Mazola brand, a leader in the corn oil market in Mexico.

The Inca brand, which holds 50% of the Mexican market for shortening fat, will also be acquired. The brands being acquired had sales in Mexico in 2003 of US$ 124 million.

This acquisition enables ABF to build on its core capabilities in the US food oils business and in particular its purchasing and marketing skills. It not only provides ABF with an entry to the growing Mexican market but also the opportunity to introduce the Capullo brand to the US where ACH already has a strong franchise with Hispanic consumers.

Commenting on this latest acquisition, John Bason, Finance Director of Associated British Foods, said:

"We very successfully integrated Mazola in the US, and now Capullo and Mazola in Mexico provide us with an excellent opportunity to take our expertise into a new and growing market for ABF."

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