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42 °F Forecast | Road Cams Sunday, January 18, 2004 Today's News | Classifieds | Autos | Homes | Jobs | Tempo | Health | Community | Home Delivery SECTIONS Home Page Local News Sports Business Obituaries Life Opinion - Politics AP News Weather Classified Archives Site Map EXTRA Newspaper in Education Personals Movie Times TV Times E The People CLASSIFIEDS Find a Car Find a Home Find a Job Find a Rental Place an ad eSouthernOregon Automotive Communities Entertainment Publications Recreation Calendar CUSTOMER SERVICE Frequent Questions Advertising Information Home Delivery Employment Contact Us Media Kit Network Affiliate Email Story to a Friend October 28, 2003 Bear Creek Corp. may be up for sale, says N.Y. Post By GREG STILES Mail Tribune It appears Bear Creek Corp. is up for sale, but all the involved parties are keeping mum. The New York Post reported in Monday editions that the nation’s biggest direct marketer of fruit and food gifts — and one of Jackson County’s largest employers — was on the auction block. Bear Creek is a subsidiary of Yamanouchi Consumer of Pleasanton, Calif., whose parent company is Japanese conglomerate Yamanouchi Pharmaceutical Co. Ltd. The Post reported that sources familiar with the situation said Citigroup has been retained to run an auction for a possible sale of the business. The investment bank has sent out an offering memorandum describing the business to potential buyers. Preliminary bids were due Monday. Advertisement Bids for Bear Creek, which is in the midst of a lengthy $50 million expansion, are expected to be between $300 million to $350 million, the paper reported. Yamanouchi Consumer President and Chief Operating Officer Bill Williams, who was in Medford on Monday, and Bill Ihle, YCI senior vice president of corporate relations, both declined to comment on a possible sale or the Post story. "I’ve heard those rumors for 15 years," Williams said. "I just can’t comment on them." Williams laughed when he was asked to confirm the Post’s report. "I can’t find anyone at Bear Creek or YCI that they tried to talk to," Williams said. "I’m guessing they called our toll-free line on Sunday and couldn’t get anybody." Ihle and Williams referred all questions to Yutaka Yamada, a Yamanouchi Pharmaceutical spokesman in Tokyo, who would say only "I’m not aware of that." Citigroup spokesman Duncan King also declined comment. R.J. Reynolds bought Bear Creek in 1983 and sold it to Shaklee Corp., in 1986. In May of 1989 Yamanouchi Pharmaceuticals acquired Shaklee. Shaklee Japan K.K., Shaklee Corp., Bear Creek and INOBYS Ltd. are all under YCI’s umbrella. Bear Creek had fiscal year 2002 sales of $489 million, a 7.4 percent growth over the $455.2 million in sales it had in 2001. The company generates about $50 million in earnings before interest, taxes, depreciation and amortization. However, it requires a great deal of capital spending to maintain business. In processes such as this, Bear Creek executives would price the company and help Citigroup prepare a memorandum, setting a minimum price. Typically, the leading contender following initial bidding would be given 60 to 90 days to investigate the company and its business operations. To some extent, it would be like the sale of a large commercial building — but with more working parts. Southern Oregon Regional Economic Development Inc. Executive Director Gordon Safley says Bear Creek has about 890 permanent full-time employees, making it the second largest employer in the county behind Asante. With its seasonal part-time staff, there is a full-time equivalency of 2,500 to 2,800 jobs. "I’m sure this will catch a lot of people’s attention," Safley says. "I’m not sure at this point that it causes too much response." When, and if, Bear Creek sells, he says, "It will raise a ton of questions about who they are and what their intentions are." Bear Creek owns Harry and David, Jackson & Perkins and Jackson & Perkins Wholesale. The Post said a limited number of strategic bidders would be involved because of Bear Creek’s highly specialized field and complicated finances tied to its structure within the parent company. Another factor is the steep, regular re-investment required for the company’s orchards and rose plantations. The Post reported that bidders could include Westbury, N.Y.-based 1-800-Flowers.com and FTD Inc., the flower-delivery provider bought out earlier this month by Los Angeles-based leveraged buyout firm Leonard Green & Partners. Leveraged buyout firms that invest in the retailing and consumer products sector, such as Bain Capital, Thomas H. Lee and Freeman Spogli may also submit bids, the Post said. Buyout firms, in general, are attracted to Bear Creek because of its strong, well-known brand names and its stable revenue. But they will be reluctant to pay a big price for the company, the Post reported, because the company currently doesn’t have a lot of growth. Reach reporter Greg Stiles at 776-4463 or e-mail [email protected] Mail Tribune Home Local News | Sports | Business | Obituaries | Life Opinion - Politics | AP News | Archives | Site Map E Southern Oregon | Classified Copyright © 1997-2003 Mail Tribune. All rights reserved. Privacy Policy | Terms & Conditions Website Feedback 3 WEEKS FREE! ADVERTISERS RESOURCES Oregon Road Conditions & Cams SPECIAL SECTIONS Auto Finder Job Finder Home Finder Joy Magazine Homelife Magazine Tempo Readers' Choice Real Estate Showcase Since We Asked Food for Thought Wellness Connection Outdoor Journal Moving to Southern Oregon? Volunteer Opportunities Prime Times