Food service unit sold
Philip Morris Cos. agreed yesterday to sell its Kraft Foodservice division, the second-largest food service business in the country, to investment firm Clayton, Dubilier & Rice Inc. for an estimated $700 million to $800 million.
The sale marks the biggest step so far in Philip Morris' campaign to shed its less profitable operations, particularly in food, and concentrate on core businesses, notably cigarettes and branded foods.
The parties didn't disclose the price or terms, but analysts estimated the figure at $700 million to $800 million.
Harbor Federal dividend
Harbor Federal Bancorp Inc., parent of Harbor Federal Savings Bank, announced yesterday that its board voted to institute the company's first quarterly dividend. The cash dividend of 5 cents a share will be paid Jan. 10 to shareholders of record as of Dec. 30, the company said. Harbor Federal, which went public in August, has about 1,220 stockholders.
ImmunoGen announces layoffs
In an effort to cut its costs, ImmunoGen Inc. will lay off 60 percent of its employees, cut salaries and suspend manufacturing and product development.
The Cambridge, Mass.-based maker of cancer-fighting drugs said it will focus its resources on the development of its lead product, Oncolysin B, designed to prevent relapses in lymphoma patients. The drug is undergoing clinical testing.
About 100 employees out of the company's 180-person work force will lose their jobs, the company said. In addition to the layoffs, senior management will take a 20-percent cut in salary.
Mini-mill venture planned
Three integrated steel companies announced plans yesterday to build a $450 million mini-mill in the Southeastern United States.
The new mill will be half-owned by LTV Corp. of Cleveland, with the remaining half split evenly by Sumitomo Metal Industries of Japan and British Steel PLC.
Integrated steel companies are those that make steel from iron ore, coal, limestone and other minerals. Their plants face price competition from mini-mills, which melt and recast scrap..
Ben & Jerry's posting first loss
Ben & Jerry's Homemade Inc. will post its first quarterly loss since going public 10 years ago, due to declining sales and competition from less expensive brands, the company said yesterday.
The Waterbury, Vt., company said it would have a fourth-quarter loss of $700,000 to $900,000 on revenues of $30 million to $31 million.