Acquisition

Associated British Foods PLC
08 October 2002


                      Associated British Foods plc ('ABF')

              ABF buys international Ovaltine brands from Novartis



For immediate release                                            8 October  2002


Associated British Foods plc ('ABF'), the international food, ingredients and
retail group, has today announced the acquisition of Novartis AG's Food and
Beverage business for €272.5 million (£171 million).  This comprises Ovaltine
and associated brands.

Ovaltine, or Ovomaltine outside the UK, is a large, growing international brand
with leading market positions in Europe and Asia.

These malt based products, available as a powder, ready-to-drink beverage,
confectionery or snack bar, provide sustained energy and nutritional benefits
that are particularly appealing to mothers, young children and teenagers. For
the last two years, on average, sales have grown by 4% a year, with sales evenly
split between Europe and the rest of the World.

In addition to Ovaltine the acquisition includes a number of strong national
brands including positions in coffee and hot chocolate.

Manufacturing facilities included in the acquisition are in Switzerland,
Thailand, the Philippines, China and Australia.

ABF, through Twinings, is already successful in the international hot beverage
market as a leading speciality tea business. Twinings has delivered substantial
growth over a number of years and had sales of over £200 million in the
financial year to September 2001. Ovaltine's sales for the similar period were
€244 million (£153 million).

Peter Jackson, Chief Executive of ABF said:  'Ovaltine with its strong
international position and first rate management will provide an excellent
growth investment for ABF.

'Alongside Twinings it will create an even stronger international business with
an improved capacity for growth, both organically and through further
acquisition.'

The acquisition will be earnings enhancing from the outset.

The consideration will be paid in cash from existing resources at completion
following the grant of appropriate regulatory approvals. There will be a closing
adjustment to account for changes in net tangible assets.  The sale did not
include the rights to the Ovaltine brand in the US or Puerto Rico.

The net tangible assets on completion are estimated to be €71 million (£45
million).

(Information, photographs and video of the acquired brands can be accessed at
www.abf.co.uk)


For further information please contact:

Associated British Foods                              Tel: [phone]
Peter Jackson
Chief Executive

John Bason
Finance Director

Geoff Lancaster                                       Tel: [phone]
Head of External Affairs


Citigate Dewe Rogerson                                Tel: [phone]
Jonathan Clare / Chris Barrie / Sara Batchelor



Notes to Editors


Associated British Foods

Associated British Foods is an international food, ingredients and retail group
with annual sales of £4.4billion and 34,000 employees.  The group is one of
Europe's largest food companies and has significant businesses in Australia,
China and the US.


Twinings

Twinings is market leader in the speciality tea market and its teas are sold in
over 100 countries with over 75% of sales outside the UK.   The brand is
internationally recognised and is synonymous with high quality teas and herbal
infusions.  Dating back to 1706, Twinings is one of the oldest tea brands.


Ovaltine

Ovaltine is a world class brand with a presence  in over 50 countries.  The
business is the largest producer of malt based hot beverages in Continental
Europe, Thailand and China.  It has market leading positions in Europe and Asia
and also sells a number of national beverage and food brands.  The business
achieved sales in the year to December 2001 of  €244 million (£153 million) with
51% of sales in Europe, 40% in Asia-Pacific and 9% in the rest of the world.
The net tangible assets at completion are estimated to be €71 million (£45
million).  There are factories in Switzerland, Thailand, the Philippines, China
and Australia.


The brands included in the transaction are:

  • Ov(om)altine   Range of nutritional malt based beverages, snacks and
                   confectionery (global brand)
  • Caotina        Chocolate drink - made with real chocolate (Switzerland)
  • Fu Lacovo      Traditional malt based drinking powder (China)
  • Galactina      Infant and baby food products, including milk, soya,
                   cereal based drinks and meals and jars (Switzerland)
  • Wander         Infant and baby food products, including Adapta, Ceralino
                   cereal  based drinks and bars (Switzerland)
  • Options        Low calorie hot chocolate powder beverage (UK,
                   Scandinavia)
  • Jarrah         Instant coffee products and hot chocolate powder
                   (Australia, New Zealand)
  • Ultraslim      Slimming products, including powder milk shakes, bars,
                   mousses (Australia, New Zealand)
  • Jemalt         Range of multivitamins and mineral supplements - malt
                   based (Switzerland)
  • Dawa           Dessert mix, cooking ingredients and milkshakes (Switzerland)
  • Duo            Dextrose based instant coffee (Switzerland)


Ovomaltine was developed in Switzerland in 1904 as the first malt based hot
beverage powder in Europe.  It was launched by Dr Albert Wander as a fortifier
for undernourished children.  Following its launch in Switzerland the business
rapidly expanded in Europe into the UK, France, Germany, Austria and Italy and
more recently has been successfully extended by a range of complementary
products.


                      This information is provided by RNS
            The company news service from the London Stock Exchange