IBP Acquires Russer Foods

IBP Inc. (Dakota City, NE) is continuing its expansion into the growing prepared foods industry with the acquisition of Russer Foods, one of the nation's leading deli meat producers. IBP has purchased all of the outstanding stock of Buffalo, NY-based Zemco Industries, Inc., the owner of Russer Foods. Terms of the transaction have not been disclosed.

Russer, a national producer and marketer of deli meats for supermarkets, generated sales of approximately $150 million in 1998. It will join IBP's Foodbrands America subsidiary as the sixth operating unit, boosting Foodbrands' annual sales to an estimated $1.4 billion. Russer management will continue to operate the business under the leadership of Howard Zemsky, Russer's president and CEO, who will also become a senior VP of Foodbrands. Toby Kinerk will continue to serve as Russer VP and GM.

Russer operates meat production facilities in Buffalo and Boston, employing approximately 400 people. The company, which has been in the processing business since 1969, markets a full line of premium deli hams, bologna, loaves, and specialty sausage products, as well as self-serve deli meats.

"We are delighted to have Russer join IBP's value-added initiative," said Robert Peterson, IBP chairman and CEO. "The addition of Russer with its family of premium branded products significantly expands our presence in the supermarket deli case."

An estimated 83% of grocery stores have delis, which is an all-time high. Meanwhile, the average size of the deli and deli sales volumes continue to grow. Average weekly sales in a service deli have increased at a compounded rate of 5.4% over the last five years.