Acquisition of Townsend completed

Press release April 1, 2006: The acquisition of Townsend Engineering by Stork Food Systems has been completed as per 31 March 2006. With locations in Des Moines, USA, and Oss, the Netherlands, Townsend produces meat processing equipment.

The company achieved a turnover of US$ 75 million in 2005 with approximately 400 employees. The acquisition price is US$ 75 million, possibly increased by an earn-out provision depending on the financial results achieved in the coming three years.

The financial results will be consolidated in the Stork results from 1 April 2006 and will contribute to the earnings per share in 2006. All Townsend employees will be transferred to Stork. The respective works councils have responded positively.

The acquisition of Townsend represents an important step in the implementation of Stork Food Systems´ strategy of strengthening its position as a system supplier in the field of further processing of meat. The acquisition also fits to Stork´s strategy to create a company with a clear focus and strong core activities.

The acquisition offers good opportunities for further growth of Townsend. The activities of the US company consist on the one hand of advanced equipment for meat processing, with which its has built a strong market position over recent decades, and on the other hand of the co-extrusion technology for sausages processing.

Integration in the field of food production and processing technology will offer major advantages to both companies, and as a result to their joint customer base.

Townsend is based in Des Moines (IA) and...

... in Oss, The Netherlands.