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General Foods Corporation Deal - Lehman Brothers Collection

General Foods Corporation

Company Dealsale of $4.50 cumulative preferred stock
Transaction TypeCumulative Preferred Stock
Deal DescriptionGeneral Foods Corporation used a portion of the proceeds from this transaction to complete payment for the Kaffee Hag business purchased in 1937. An additional portion of the proceeds was used for estimated capital expenditures during 1938. Such capital expenditures included the construction in the New York metropolitan area of a new coffee plant for the consolidation of the processing of Maxwell House coffee, now conducted at the company's Brooklyn, NY plant, with the processing of Sanka Coffee and Kaffee Hag; the construction, as a part of the new coffee plant, of a new research laboratory to centralize in one place certain of the company's research activities; the construction in La Poile Bay, Newfoundland, of a plant for the processing and quick-freezing of fish; the manufacture of additional portable quick-freezing machines and the purchase of additional refrigerating cabinets and related equipment; the completion of the new corn mill at Kankakee, Il.; and for miscellaneous additions, replacements, and improvements to existing plants of the company and completion of new buildings at Battle Creek, MI. Any additional proceeds were added to the company's working capital.
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