Acquisition

Associated British Foods PLC
23 April 2002



23 April 2002

       ABF Buys Unilever's Mazola and Associated Brands in North America

Associated British Foods plc ('ABF'), the international food, ingredients and
retail group, today announced the acquisition, by its subsidiary ACH Food
Companies ('ACH'), of Unilever's branded corn oil and corn products business in
the US, Canada and Puerto Rico, for an all cash consideration of US$360 million
(£248 million). The consideration will be paid from existing resources at
completion following the grant of appropriate regulatory approvals. There will
be a closing adjustment to take account of changes in inventory levels. The
acquisition positions ACH, already a leader in North American food oils in the
foodservice and own label markets, as a leader also in the branded retail
sector.

As a result of this transaction ACH will acquire a manufacturing facility in
Argo, Illinois, manufacturing assets in Puerto Rico and New Jersey, goodwill,
and leading brands from Unilever which include: Mazola (salad and cooking oils),
Argo (cornflour), Kingsford's (cornflour), Purlite (cooking oil), Karo (corn
syrup), Golden Griddle (table syrup), Henri's (salad dressing) and a number of
Canadian brands. The acquired brands achieved sales in 2001 of US$310 million
(£214 million). The acquisition includes net tangible assets valued at 31
December 2001 at US$ 46 million (£32 million).

ACH is already a leader in the branded foodservice oil sector following its
acquisition of the Whirl and Frymax brands from Procter & Gamble last year. It
is also a leader in own label vegetable oils in the US. This acquisition, which
will be fully integrated into ACH's operations, further strengthens its retail
position by adding the leading corn oil brand to its portfolio. It will generate
a return on investment in excess of the cost of capital from the outset and is
expected to produce additional savings when fully integrated.

Rationale highlights:


  • Highly complementary to ACH's existing business which has:

      • extensive knowledge and experience of the industry

      • strong trade relationships

      • an understanding of how to achieve operational efficiencies to deliver
        a low cost base

  • Mazola is a premium brand with a strong loyalty in the trade and with the
    consumer

  • ACH can add value by:

      • creating stronger channels to market

      • achieving significant cost savings

      • providing greater sales and marketing focus

Peter Jackson, Chief Executive of Associated British Foods, said:

'This acquisition is in line with our ongoing policy of investing in areas where
we have strength and expertise. The successful integration of the former Procter
& Gamble branded foodservice oils business demonstrates our track record in
absorbing and adding value to such acquisitions. We are confident that we will
develop Mazola and associated brands for the benefit of our shareholders.'

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 £4.4 billion and 34,000 employees. The group is one of
Europe's largest food companies, and has significant businesses in Australia,
China, and the US.

ACH

ACH Food Companies is a subsidiary of Associated British Foods. It markets a
broad range of products to the retail grocery, foodservice and food processor
segments. These products include speciality shortenings and oil-based products,
speciality rice products, non-dairy spray dried products and cheeses, spray
dried savoury ingredients and ingredient systems. Headquartered in Memphis,
Tennessee, it operates 8 manufacturing facilities in the US with over 1700
employees.

Mazola

Mazola and the associated brands are leading branded corn oil and corn products
in the US, Canada and Puerto Rico. Mazola oil is currently produced at three
sites in Illinois, New Jersey and Puerto Rico. The brands acquired operate in
the corn oil, cornflour and corn syrup markets and include:


    Mazola salad and cooking oils, in the US, Canada & Puerto Rico; Argo
    cornflour in the US and Puerto Rico; Kingsford's cornflour in the US and
    Canada; Purlite cooking oil in Puerto Rico; Karo corn syrup in the US, and
    Puerto Rico; Golden Griddle table syrup in the US and Puerto Rico and
    Henri's salad dressing in the US.

For further information and photographs of the acquired brands, please access:
http://www.abfoods.com/latest_news/index.html





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