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Hershey Foods Corporation, Hershey, Pennsylvania, has agreed to sell its U.S. pasta business to New World Pasta, LLC, for $450 million, and will retain a minority interest in the business. Included in the sale are the American Beauty, Ideal by San Giorgio, Light 'n Fluffy, P&R, Mrs. Weiss, Ronzoni, San Giorgio and Skinner brand pastas, and six manufacturing plants. "Over the years, this business has provided profitable growth and good cash flow for the corporation and today enJoys the leadership position in the U.S. branded dry pasta category," says Kenneth Wolfe, Hershey Foods' chairman and CEO. "However, after a thorough review of our strategic direction, we have concluded that we can generate a better return for our shareholders by focusing our resources on our confectionery and related grocery and foodservice businesses," he says. In 1997, Hershey's pasta business experienced $400 million in combined sales. "I am extremely pleased by the opportunity to work again with the dedicated employees of the pasta business, and we are very optimistic about the future prospects of the business," says C. Mickey Skinner, retired president of Hershey Pasta Group, and current chairman and CEO of New World. Skinner retired from Hershey at the end of 1997. Other principals in New World include the Miller Milling Company and Joseph Littlejohn & Levy Fund III. New World has said it will locate its headquarters in the central Pennsylvania area, and offer all current Hershey pasta employees employment. The transaction is scheduled for completion by the end of the month.