Plans for Somerdale Plant Closure Confirmed
February 09 2010 - 12:44PM
UK Regulatory
TIDMCBRY
RNS Number : 9168G
Kraft Foods Inc.
09 February 2010
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR
FROM JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION
OF THE RELEVANT LAWS OF THAT JURISDICTION
Contacts:
Brunswick Group LLPKraft Foods
Jonathan Glass: 020 7404 5959 Jonathan Horrell: 01242 236 101
Richard Jacques
Cadbury
Tony Bilsborough: 0121 787 2480
Cadbury plans for Somerdale plant closure confirmed
Uxbridge, February 9th, 2010 - Kraft Foods today announced that following
extensive talks with senior management at Cadbury, it has reluctantly accepted
that Cadbury plans to close the Somerdale manufacturing facility in Keynsham,
near Bristol are so far advanced that it is unrealistic to reverse them.
Regrettably, the company has now confirmed that the Somerdale plant will close
by 2011 in line with the plans already put in place by Cadbury.
It has now become clear that the investment required to reverse the closure
programme would be so significant that alternative plans were not viable.
Cadbury has already invested more than GBP100 million in building new production
facilities in Poland and the majority of the lines have, or are about to be,
transferred by mid of this year.
Commenting on the announcement, Irene Rosenfeld, Chairman and CEO, Kraft Foods,
said:
"In our recent talks with Cadbury senior management, it became clear that it is
unrealistic to reverse the closure programme, despite our original intent to do
so. While this is a difficult decision, we have moved quickly to end any further
uncertainty."
She continued, "We remain committed to investing in growing our combined
business in the UK and will continue to support Cadbury's existing GBP30 million
investment plans for the Bournville site. During the next six months we are
conducting a strategic review of our combined manufacturing network. We continue
to believe that the combination of Kraft Foods and Cadbury will accelerate
growth to the long term benefit of our employees."
The company has said that it will honour Cadbury's previous undertakings to
Somerdale employees concerning the terms and conditions of the closure and the
commitment to rebuild the Fry Club on the Somerdale site.
About Kraft Foods
The combination of Kraft Foods and Cadbury creates a global powerhouse in
snacks, confectionery and quick meals. With annual revenues of approximately
$50 billion, the combined company is the world's second largest food company,
making delicious products for billions of consumers in more than 160 countries.
The combined company's portfolio includes 11 iconic brands with revenues
exceeding $1 billion - Oreo, Nabisco and LU biscuits; Milka andCadbury
chocolates; Trident gums; Jacobs and Maxwell House coffees; Philadelphia cream
cheeses; Kraft cheeses, dinners and dressings; and Oscar Mayer meats. Another
70+ brands generate annual revenues of more than $100 million. Kraft Foods
(www.kraftfoodscompany.com; NYSE: KFT) is a member of the Dow Jones Industrial
Average, Standard & Poor's 500, Dow Jones Sustainability Index and Ethibel
Sustainability Index.
Further information
Other than as expressly set out in this announcement, capitalised terms used in
this announcement shall have the meaning given to them in the Final Offer
Document published by Kraft Foods on 19 January 2010.
This announcement does not constitute, and must not be construed as, an offer to
sell or an invitation to purchase or subscribe for any securities or the
solicitation of an offer to purchase or subscribe for any securities, pursuant
to the Offer or otherwise. The Offer is being made by the Original Offer
Documents, the Final Offer Documents and accompanying documentation (the "Offer
Documentation"). Cadbury Securityholders who accept the Offer may rely only on
the Offer Documentation for all the terms and conditions of the Offer.
This announcement is not a prospectus for the purposes of the EU Prospectus
Directive. Cadbury Securityholders in the EU should not tender their shares
except on the basis of information in the prospectus published pursuant to the
EU Prospectus Directive on Kraft Foods' website (as supplemented from time to
time). In making their decision whether or not to accept the Offer, Cadbury
Securityholders who are South African residents will need to take into account
the Excon Regulations, and consider whether or not their acceptance of the Offer
and their subsequent receipt of consideration for their Cadbury Shares from
Kraft Foods, whether in the form of cash and/or New Kraft Foods Shares, will be
in compliance with the Excon Regulations.
The release, publication or distribution of this announcement and any other
Offer-related documentation in jurisdictions other than the UK, the US, Canada,
France, Ireland or Spain, and the availability of the Offer to Cadbury
Securityholders who are not resident in such jurisdictions may be affected by
the laws or regulations of relevant jurisdictions. Therefore any persons who are
subject to the laws and regulations of any jurisdiction other than the UK, the
US, Canada, France, Ireland or Spain, and Cadbury Securityholders who are not
resident in such jurisdictions should inform themselves of and observe any
applicable requirements.
Forward-looking statements
This announcement contains forward-looking statements regarding Kraft Foods'
combination with Cadbury. Such statements include, but are not limited to,
statements about the benefits of the combination and other such statements that
are not historical facts, which are or may be based on Kraft Foods' plans,
estimates and projections. These forward-looking statements are subject to a
number of risks and uncertainties, many of which are beyond Kraft Foods'
control, that could cause Kraft Foods' actual results to differ materially from
those indicated in any such forward-looking statements. Such factors include,
but are not limited to, the risk factors, as they may be amended from time to
time, set forth in Kraft Foods' filings with the US Securities and Exchange
Commission ("SEC"), including the registration statement on Form S-4, as amended
from time to time, filed by Kraft Foods in connection with the offer, Kraft
Foods' most recently filed Annual Report on Form 10-K and subsequent reports on
Forms 10-Q and 8-K. Kraft Foods disclaims and does not undertake any obligation
to update or revise any forward-looking statement in this announcement, except
as required by applicable law or regulation.
Additional US-related information
This announcement is provided for informational purposes only and is neither an
offer to purchase nor a solicitation of an offer to sell shares of Cadbury or
Kraft Foods. Kraft Foods has filed a registration statement and tender offer
documents, including subsequent amendments, and Cadbury has filed a
solicitation/recommendation statement on Schedule 14D-9, including subsequent
amendments, with the SEC in connection with the recommended final offer. Cadbury
Shareholders who are US or Canadian residents and holders of Cadbury ADSs,
wherever located, should read those filings, and any other filings made by Kraft
Foods and Cadbury with the SEC in connection with the recommended final offer,
as they contain important information. Those documents, as well as Kraft Foods'
other public filings with the SEC, may be obtained without charge at the SEC's
website at www.sec.gov and at Kraft Foods' website at www.kraftfoodscompany.com.
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