Olson Agrees to Sell Stake in H-O Foods

Olson Industries said it has reached a tentative agreement to sell its 50% stock interest in H-O Foods, a Nevada distributor of processed eggs, to the Newel Howlett family of Las Vegas, which has operated H-O Foods for 25 years.

Exact terms of the deal, which involves deferred payments over five years, were not disclosed. But Olson Industries said that, as a result of the transaction, it anticipates a gain in net income of approximately $1.20 per share for the fourth quarter of 1986.

The move will give the Howletts sole interest in H-O Foods. Jonathan M. Berge, executive vice president of Olson Industries, said the company sold its interest because it needed the cash to expand its plastics business.

Olson Industries, based in Sherman Oaks, distributes eggs and makes plastic food packaging.