Gerber Sells Day-Care Centers
FREMONT, Mich. (AP) _ Gerber Products Co. announced Monday it is selling its 115 day-care centers, another divestiture aimed at getting the company back to the basics of baby food.
Fred Schomer, Gerber’s executive vice president and chief financial officer of Gerber, said an affiliate of KD Equities, a New York-based private investment partnership, would buy Gerber Children’s Centers Inc. Terms of the sale were not disclosed.
The subsidiary provides day care and educational programs for more than 13,000 preschoolers in New York, Illinois, California, Florida, Oklahoma, Ohio, Michigan, Maryland, Virginia, Georgia, Texas and Arizona.
Marion H. Antonini, chairman of KD Operating Cos., said the company planned to keep the current staff and continue programs now in place at the centers.
In the last two years, Gerber has sold several unprofitable subsidiaries, including a trucking company and companies that made children’s furniture, infant car seats, plush toys and sleepwear.
Gerber, as it refocuses on baby food, recently announced it will begin testing a new line of foods for children ages 18 months to 36 months.
Analysts have applauded Gerber’s decisions to divest itself of its fringe businesses.
Gerber reported net income of $94.1 million on sales of $1.14 billion for the year ended March 31.