Triarc Plans Spinoff of RC Beverage, Arby’s Restaurant Businesses
NEW YORK (AP) _ Triarc Companies Inc. said today it plans to spin off its beverage and restaurant operations, which include Royal Crown and Mistic soft drinks and Arby’s fast-food outlets, into a separate company.
Triarc said its board approved plans to sell 20 percent of the stock of beverage and food business to the public and to give the remaining 80 percent to Triarc shareholders.
The two lines of business accounted for about 65 percent of Triarc’s anticipated $1 billion in revenue this year.
The move will leave Triarc with interests in National Propane Corp., a leading retailer of liquified natural gas, and the C.H. Patrick dyes and specialty chemicals operation.
Nelson Peltz, chairman and chief executive of Triarc, and Peter May, its president, said the moves would give the restaurant and beverage businesses easier access to raising money for expansion.
In addition, he said it would also provide a way to give those involved in those businesses an ownership stake.
Peltz and May formed Triarc more than three years ago from businesses once controlled by financier Victor Posner. Peltz and May own 25 percent of Triarc.
The spinoff and stock offering are subject to obtaining an Internal Revenue Service ruling that the transaction will be tax-free to the company and its stockholders.
The spinoff and offering are not expected to occur until mid-1997.
Royal Crown Co. was the nation’s fifth-largest soft drink company in 1995 with an estimated 2 percent share of the market. Triarc acquired Mistic Brands Inc., which specializes in making premium juices, in 1995.
The Arby’s chain includes about 3,000 restaurants including 300 owned outright and remainder owned by franchise holders. Its also owns the p.t. Noodle’s pasta, T.J. Cinnamons and ZuZu food stalls.
Even before the spinoff, Triarc said it was creating a new Triarc Beverage Group to oversee the operations of its Royal Crown and Mistic Brands operations.
Michael F. Weinstein, chief executive of Mistic, will be the beverage group’s chief executive and have direct operating responsibility for both companies.
John Carson, president of Royal Crown, will be chairman of the beverage group and oversee international operations, among other things.
The beverage group will be based in White Plains, N.Y. Royal Crown and Mistic will continue to operate independent sales and marketing organizations, but the finance, administrative and operations functions will be consolidated.