TLC Beatrice International Sells Spanish Ice Cream Operations; Approves Liquidation Plan

TLC Beatrice Holdings, Inc. (New York) and the Iberian Beverages Group (IBG), a Spanish soft drink company, have come to an agreement for the sale of TLC Beatrice's ice cream operations in mainland Spain and the Canary Islands. The buyer is La Industrial Carbonica, S.A. (LICSA), a wholly owned subsidiary of IGB. The sale is for US$191 million, which includes cash and a $120 million promissory note. The completion of the sale is expected to occur sometime in the summer of 1999.

TLC Beatrice also announced that its board of directors has approved a plan of liquidation and the sale of the company's remaining assets with the proceeds to be distributed to the stockholders. The company's remaining assets consist of cash and its Irish snack food business, Tayto.

"The acquisition of the Spanish ice cream operations of TLC Beatrice is an important step for Alpha Private Equity Group (APEG), the controlling shareholder of La Casera, LICSA and their common parent, IBG, in the establishment of a pan-European beverage and food group of companies," said Jose Arozamena, CEO of APEG, IBG, La Casera and LICSA.

The transaction with IBG includes TLC Beatrice's 65% ownership interest in Grupo Kalise Menorquina, S.A. (GKM). GKM was created by the recent merger of TLC Beatrice's two Spanish operations. These are La Menorquina, a Barcelona-based ice cream manufacturer and Interglas, an ice cream manufacturer in the Canary Islands.