Borden Foods Selling International Businesses to Nestle

Borden Foods Corp. and Nestle S.A. have entered into definitive agreements for Nestle to acquire the following Borden Foods International businesses:

• The KLIM milk powder brand worldwide, including Latin American operations in Colombia, Panama and Costa Rica, which also produce and market other dairy and non-dairy products.
• Borden South Africa, which is a leading producer and marketer of non-dairy coffee creamer, plus rights to the Cremora non-dairy creamer brand in Africa and the Middle East.
• Mantecados Nevada, a leading producer and marketer of ice cream in Puerto Rico.

Terms of the cash transaction were not disclosed.

According to C. Robert Kidder, chairman of Borden Foods and chairman and CEO of Borden, Inc., "Since announcing a new company strategy in March 1997, Borden Foods has been acting decisively to focus its ongoing business in the chosen area of grain-based meal solutions. Today's agreements nearly complete the process of divesting businesses that are not aligned with this focus.''

Peter M. Dunn, president and COO of Borden Foods, added, "With the divestment phase winding down, we are shifting efforts toward driving growth in meal solutions, building on today's base in pasta, pasta sauce, and dry soup and bouillon.''

Borden Foods Corp. is an affiliate of Borden, Inc. Each is headquartered in Columbus, Ohio, and owned separately by affiliates of the investment firm Kohlberg Kravis Roberts & Co.