New York's Senator
CHARLES E. SCHUMER
FOR IMMEDIATE RELEASE June 30, 2000
SCHUMER ASKS
FTC TO HOLD DECISION ON HEINZ MERGER UNTIL COMPANY FINISHES STUDYING
BEECH-NUT PLANTS
Heinz Will Send Economic
Development Specialist To Canajoharie In July To Meet With Beech-Nut
Managers To Evaluate Plants' Role In Company
US Senator Charles E. Schumer today asked the Federal Trade Commission
(FTC) to wait until Heinz completes its analysis of the Beech-Nut
plants in Canajoharie and Fort Plain before it rules on the proposed
merger between H.J. Heinz, Inc. and Milnot Holding Corporation.
Milnot is the parent company of Beech-Nut and its merger with Heinz
could result in the closure of the plants in Canajoharie and Fort
Plain.
In a letter to FTC Chairman Robert Pitofsky, Schumer explained
that Heinz is currently studying how to use these plants should
its proposed merger win FTC approval. He asked that the FTC wait
until Heinz completes this study before rendering a decision.
"These plants are central to the economies of Fort Plain and
Canajoharie. Given their importance to these communities, I ask
that the FTC hold off on its decision until Heinz determines how
it will incorporate these facilities into its operations,"
Schumer wrote.
"Although these Beech-Nut facilities are highly productive,
their future is uncertain because the motivation behind the merger
is the consolidation of Beech-Nut and Heinz baby food brands. With
more than 350 jobs supported by these plants, any decision by Heinz
to close them down could send a chill through the Fort Plain and
Canajoharie economies," Schumer continued.
In a conversation with Schumer this week, Heinz CEO William Johnson
promised to send the company's head of Global Development to Canajoharie
next month to meet with local officials and managers at the Beech-Nut
plant. Johnson said that the company has had a team of consultants
working to determine how to incorporate the Fort Plain and Canajoharie
facilities into the merged company Last May,
Schumer met with local officials in Canajoharie as well as representatives
from Heinz and Beech-Nut about the prospective plant closings.
A copy of Schumer's letter is attached.
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