News

U.S. Growth Funds Completes Acquisition of Jardine Foods, Inc.

Fort Worth, Tx - June 2, 2002 - U.S. Growth Funds Corporation, (USGF), (formerly known as KBK Capital Corporation), announced today that it has completed the buyout of Jardine Foods, Inc. (“Jardines”) from from Gourmet Group, Inc (NASDAQ: GOUG) and incorporated a newly-formed holding company (Star Brands). USGF purchased a combination of common stock and convertible notes to finance the acquisition.  The common shares and convertible notes represent 100% of the common shares of the Company.    

Operating under the trade names D.L. Jardines, Jardines 7J Ranch, Shotgun Willie's, Buckaroo, D.L. Jardine's and Sontava Foods, the company has been producing premium-quality Texas foods since 1979. The company's products include Gourmet Salsas, Barbecue Sauces, Chili Seasonings, Fajita Marinades and Salad Dressings, and are marketed through many of the country's best retailers and high end specialty gift distributors such as Harry & David's, Williams-Sonoma, Neiman Marcus, and Central Market.  To learn more about Jardines, please visit www.jardinefoods.com.

M. Bradley Wallace, of U.S. Growth Funds Corporation said, "Jardines has a 22 year track record of producing some of the highest quality food products in their niche of the specialty food market. This company exhibited an early understanding of the world's increasing infatuation with 'Texana' products, and has demonstrated notable proficiency in capitalizing on this expanding market. This investment enables Jardines to continue expanding the distribution of its products and to fund exciting additional new product lines.  Jardines operates in a high growth industry and USGF is enthusiastic about the expansion potential of this business."

Derek Lewis, President of Jardine Foods, will oversee the growth of the company.  He stated, "Without USGF's support, this Company’s market potential could not be realized."
USGF Chairman & CEO, Bobby McGee commented, "Jardines is an attractive, strong growth opportunity for USGF. This opportunity complements our continuing interest in the premium branded food products business.  Jardines represented an exciting opportunity to own a strong regional brand and expand it nationally."

USGF is a private equity firm and an equity investor in management and employee buyouts; invests in private equity sponsored buyouts, provides capital directly to private and small public companies. USGF provides capital to fund growth, acquisitions, going-private transactions and recapitalizations.

This press release contains forward-looking statements. The statements regarding expected results of U.S. Growth Funds Corporation are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional or national economic conditions, or changes in the conditions of the industries in which U.S. Growth Funds Corporation has made investments.