Authentic Specialty Foods, Inc.
Ticker:ASFD 1313 Avenue R
Exchange:NASDAQ-National Market Grand Prarie, TX 75050
Industry:Wholesale (SIC Code 5141) (972) 933-4100

Offering Information
Type of Shares:Common Shares Filing Date:6/25/97
U.S. Shares:4,000,000 Offer Date:8/27/97
Non-U.S. Shares:0 Filing Range:$9.00 - $11.00
Primary Shares:4,000,000 Offer Price:$8.00
Secondary Shares:0 Gross Spread:$0.56
Offering Amount: $40,000,000 Selling:$0.30
Expenses:$1,150,000 Reallowance:$0.10
Shares Out After:6,361,500

Primary Underwriting Group
ManagerTierPhone
Cruttenden Roth IncorporatedLead Manager (800) 678-9147
Sutro & Company Inc.Co-manager (415) 445-8323
Wedbush Morgan SecuritiesCo-manager (213) 688-8050

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Vinson & Elkins
Bank's Law Firm: Gardere & Wynne
Auditor: Rylander, Clay & Opitz, L.L.P.

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
3 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 3/31/97 3/31/96 3/31/97
Revenue:$21.20$5.44$5.28Assets:$6.94
Net Income:$0.00$0.13$0.01Curr Assets:
EPS:$0.00$0.07$0.00Liabilities:$4.70
Prior EPS:-$0.31$0.11$0.19Curr Liabilities:
Cash Flow/Oper:$0.56Equity:$2.23
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company is a leading provider of an extensive line of Mexican food products to Mexican-American consumers, as well as non-Hispanic consumers who enjoy authentic Mexican food. After this Offering, the company believes that it will be the largest publicly-owned company engaged solely in the manufacture and distribution of Mexican food products targeting primarily the Mexican-American consumer. The company has two separate brands -- Calidad (TM) and La Victoria (TM) -- both of which are recognized for high quality products and well-accepted by the company's target consumers. The Calidad and La Victoria brands have strong market positions in the southwester and western regions of the United States, respectively, particularly in Texas and California. Following the completion of this Offering, the company will be poised for internal growth and to take advantage of acquisition opportunities in the highly fragmented Mexican food industry. Management has extensive experience in the food industry and intends to utilize its expertise to improve the operating efficiencies and to expand the sales of Authentic Specialty Foods and any companies acquired in the future.

Use of Proceeds
The proceeds from the proposed offering will be used to purchase shares of common stock currently owed by Shansby, to pay the cash consideration in, and transaction expenses related to, the La Victoria acquisition, to repay certain indebtedness and for general corporate purposes, which may include acquisitions.

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