MINNEAPOLIS -- The Pillsbury Co. Tuesday was merged into Grand Metropolitan PLC, the British conglomorate that acquired the consumer foods and fast-food company in a takeover that began three months ago.
Ian A. Martin, chief executive of the United States operations of Grand Metropolitan PLC, became chairman and chief executive officer of Pillsbury, including Burger King, with the merger of Pillsbury into a wholly owned subsidiary of Grand Metropolitan PLC.
'This is basically the last chapter,' said Mary Carroll, spokeswoman for Grand Metropolitan's United States operations in Montvale, N.J.
'It just means Grand Met has bought out the remaining shares that were not bought out in the latest extension on Jan. 3 when 98 percent had been tendered,' Carroll said. 'Grand Met bought the remaining 2 percent. So now we own 100 percent of the shares of Pillsbury, and Pillsbury is a wholly owned subsidiary of Grand Met.'
Martin will make his office in Minneapolis. Pillsbury chairman Philip Smith resigned Tuesday with the merger completed.
Grand Met paid $66 a share, up from in its initial offer of $60 on Oct. 4, when the $5.7 billion deal was accepted by the Pillsbury board and announced Dec. 18.
'Mr. Martin and his international foods staff will be moving to Minneapolis in the next couple of weeks,' Carroll said. 'He is in Minneapolis today, (but) he hasn't actually moved bag and baggage yet.'
The Montvale office will remain open as the U.S. headquarters for Grand Metropolitan Inc., which is separate from the foods group, Carroll said. It will continue to provide corporate finance, legal, tax, public affairs and personnel staffs functions.
Martin is moving the world-wide foods group headquarters to Minneapolis but the spokeswoman did not detail how many people would transfer to Minnesota, nor how many Pillsbury employees might leave in the coming weeks.
Martin will oversee Pillsbury, Express Foods Group International and Alpo Petfoods out of Minneapolis.
'That doesn't mean every person in the foods group will move there,' Carroll said. 'Alpo will stay in Allentown, Pa. Express Foods, based in London, will stay in London.'
