IBP Acquires Appetizer Division of Diversified Foods

IBP, Dakota City, NE, through a special acquisition subsidiary, has purchased the assets of the appetizer division of Diversified Foods Group, L.L.C. The Chicago-based division, which includes a production plant in Chicago and another in Newark, NJ, was acquired by an IBP subsidiary called DFG Holdings, L.L.C. The business will operate as a free-standing division of IBP's Foodbrands America.

"The appetizer business is one of the fastest growing segments in the foodservice and retail food industries, with consumer trends toward hand held, convenient and quality home meal replacements," according to Robert Peterson, IBP chairman and CEO. "Through DFG and Foodbrands, we will capitalize on this growth."

The integration of DFG into Foodbrands is expected to increase Foodbrands' annual sales by approximately $60 million. Another benefit will be the combined sales and marketing effort of DFG and Foodbrands, and the resulting increase in cross-selling opportunities.