MINNEAPOLIS -- International Multifoods Corp. (NYSE:IMC) today announced it has entered into an agreement with a newly formed affiliate of Wellspring Capital Management LLC, a private equity investment firm based in New York City, to sell the stock of its foodservice distribution business for approximately $180 million in cash.

According to a company release, the transaction should be completed before the end of September.

Multifoods intends to use the cash proceeds from the sale to reduce debt.

"The decision to sell the company's foodservice distribution business represents another important step forward in Multifoods' transformation to a branded food products company," said Gary E. Costley, International Multifoods chairman and chief executive officer. "By divesting the foodservice distribution business, we can now focus our full attention on food manufacturing and build on our expertise in grain-based foods."

As a result of the sale, Multifoods now must report its foodservice distribution business as a discontinued operation.

Related Content

User Comments – Give us your opinion!
Products & Services

Free Menu Board Media Player Promotion

http://global.networldalliance.com/new/images/products/6675.png

6675/Free-Menu-Board-Media-Player-Promotion

Pepperoni

http://global.networldalliance.com/new/images/products/6787.png

6787/Pepperoni

Digital Menu Boards

http://global.networldalliance.com/new/images/products/6681.png

6681/Digital-Menu-Boards

HAND-PINCHED STYLE® Sausage and Beef Toppings

http://global.networldalliance.com/new/images/products/6785.png

6785/HAND-PINCHED-STYLE-Sausage-and-Beef-Toppings

Online Ordering

http://global.networldalliance.com/new/images/products/4285.png

4285/Online-Ordering

Quote decoder: how to compare restaurant POS systems

http://global.networldalliance.com/new/images/products/1290.png

1290/Quote-decoder-how-to-compare-restaurant-POS-systems

See the latest in restaurant POS

http://global.networldalliance.com/new/images/products/1926.png

1926/See-the-latest-in-restaurant-POS

Custom Digital Signage Templates

http://global.networldalliance.com/new/images/products/6683.png

6683/Custom-Digital-Signage-Templates

Food Cost Management

http://global.networldalliance.com/new/images/products/6401.png

6401/Food-Cost-Management

Granbury Websites

http://global.networldalliance.com/new/images/products/6815.png

6815/Granbury-Websites

Fast Casual Executive Summit
Request Information From Suppliers
Save time looking for suppliers. Complete this form to submit a Request for Information to our entire network of partners.