TORONTO – Specialty Foods Group Income Fund (the "Fund") announced today that it has been advised by Specialty Foods Group, LLC ("SFG") that Indiana Packers Corporation, makers of INDIANA KITCHEN® premium pork products, has completed the previously announced acquisition of SFG.
The sale of SFG gives rise to initial net cash proceeds for the Fund in the range of approximately US$28.3 million. The Fund may also be entitled to receive up to approximately US$2.2 million from escrowed funds at different time intervals until 2020 to the extent such funds are not required to satisfy closing adjustments, warranty claims and other indemnity amounts. Such amounts will be converted to Canadian funds upon receipt and held in trust on an interest bearing basis.
Amounts received by the Fund will be held in trust and will be subject to applicable, income taxes, professional fees and other expenses. The amounts held in trust, after taking into account such taxes, fees and other expenses, will be distributed to the Fund's unitholders in accordance with the SFG Plan of Arrangement approved by the Ontario Superior Court of Justice on February 22, 2017. The timing of such distribution will depend upon, among other things, receipt of tax clearance certificates. The Fund has been advised that in similar circumstances tax clearance certificates often are received approximately two years after tax returns have been filed, but there is no certainty as to timing.
The Fund will provide details to unitholders from time to time as to the reserve amount available for distribution to Fund unitholders as well as the anticipated timing of such distributions.
This press release contains forward-looking information within the meaning of applicable securities laws that reflects the current expectations of the trustee of the Fund. The words "may", "would", "could", "should", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate", "aim", "endeavour", "project", "continue", "predict", "potential", or the negative of these terms or other similar expressions have been used to identify such forward-looking information.
Forward-looking information is based upon a number of assumptions and is subject to a number of known and unknown risks and uncertainties, many of which are beyond the Fund's control, and that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those expected or estimated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Certain factor(s) could cause actual results to differ materially from those discussed in the forward looking information.
This forward-looking information represents the trustee's understanding as of the date of this press release. While subsequent events and developments may cause such understanding to change, the Fund does not intend to update this forward-looking information, except as required by applicable securities laws.
Source: Specialty Foods Group, LLC