SUIZA FOODS ANNOUNCES ACQUISITION OF DAIRY AND PLASTIC COMPANIES    PR NEWSWIRE

JUNE 23, 1997 7:36 AM EDT

DALLAS, June 23 /PRNewswire/ --Suiza Foods Corporation (NYSE: SZA) 
announced today that it has signed a definitive agreement to purchase 
the stock of three dairy manufacturing companies and 16 affiliated 
plastic manufacturing companies headquartered in Franklin, 
Massachusetts. The combined businesses had annual sales of approximately 
$370 million in their most recent fiscal years. The acquired operations 
include: Garelick Farms in Franklin, Massachusetts; Fairdale Farms in 
Bennington, Vermont; and Grant's Dairy in Bangor, Maine. They also 
include the Miscoe Springs water bottling company in Mendon, 
Massachusetts and 16 plastic bottle manufacturing operations located in 
Connecticut, Florida, Georgia, Illinois, Louisiana, Maine, 
Massachusetts, New Jersey, North Carolina, Ohio, Pennsylvania, Texas and 
Virginia. Suiza expects to complete the acquisition within 60 days 
pending regulatory approval.

In a separate announcement today Suiza Foods reported that it signed a 
definitive agreement to acquire Dairy Fresh of Winston-Salem, North 
Carolina. The combined purchase price of the two transactions is 
expected to be approximately $400 million in cash and stock, subject to 
certain post closing adjustments. Financing for these transactions will 
be provided under a recently expanded $700 million senior lending 
facility underwritten by First Union National Bank and The First National 
Bank of Chicago.

Gregg L. Engles, Suiza's Chairman and Chief Executive Officer, 
commented: "The acquisition of Garelick Farms is an exciting opportunity 
and an important step forward in our growth strategy. Garelick is the 
premier fluid dairy processor in the region, and will provide us an 
important base in New England from which to grow in the dairy category. 
Garelick's strong brands and its high quality products, workforce and 
facilities will become important assets for Suiza Foods. In addition to 
the dairy operations, we receive the added benefit of acquiring 
a vibrant, very successful and rapidly growing plastic container 
manufacturing operation that will provide us with a number of synergies 
and additional growth opportunities. We anticipate the acquisition will 
be immediately accretive to earnings and, along with adding new 
businesses and markets, will complement our existing operations by 
improving efficiency and profitability. We expect Garelick Farms' fine 
management team and outstanding workforce to stay on and become an 
important part of the Suiza family."

Alan Bernon, Garelick Farms President, stated: "Joining Suiza offers 
Garelick Farms and its employees an excellent opportunity to join the team 
of one of the strongest, fastest growing dairy operators in the country. 
Suiza shares our goal of providing our customers with the highest 
quality products and efficient service and providing our employees with 
a dynamic, growing and secure workplace environment." Peter Bernon, 
Garelick Farms Chairman, added: "We have built a strong, multi-faceted 
company and have had a significant amount of success in growing it fairly 
quickly. By joining forces with Suiza Foods, we can continue to expand 
our business with the strength and reputation of one of the finest dairy 
companies in the country. Alan and I are going to continue managing this 
company under the same family name and by the same quality standards which 
have been the hallmark of the Garelick brand for 66 years."

Suiza Foods is a Dallas-based consolidator of distribution oriented food 
businesses. Its principal holdings are in the dairy processing and 
packaged ice industries and include Suiza Dairy and the Garrido Coffee 
Company in Puerto Rico, Velda Farms Dairy in Florida, Swiss Dairy in 
California, Model Dairy in Nevada, and Reddy Ice, the largest packaged 
ice company in the United States.

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