Skinners Selling Firm That Funds Major Charity -- Family Plans To Restructure Leading NW Foundation

In a major move to restructure the holdings of one of Washington's wealthiest and most prominent families, Alpac Corp. of Seattle said today it will be sold to Pepsi-Cola North America.

The sale by the Skinner family will have an immediate impact on the Skinner Foundation, which provided about $7.3 million to local arts, cultural and social organizations since its founding in 1956. The family said today the foundation will be restructured in light of the sale.

The family is also liquidating its interest in NC Machinery, a Caterpillar franchise, though it will continue to own the Carillon Point development in Kirkland.

"The family has chosen not to stay in business any more," said Carl Behnke, president and chief executive officer of Alpac.

Alpac is a Seattle soft-drink bottler and the nation's second-largest independent bottler of Pepsi, Seven-Up and related soft drinks. Pepsi has owned 15 percent of Alpac since 1988.

Until now, Alpac and NC Machinery have given 5 percent of pre-tax profits to the foundation, totaling $8.6 million in five Western states. The foundation has given money to the University of Washington, Cornish College of the Arts, the Seattle Art Museum, Corporate Council for the Arts, Bailey-Boushay House, Children's Hospital and the Fred Hutchinson Cancer Research Center.

Behnke said that selling the businesses will enable its owners - all members of Washington's Behnke, Nordhoff and Skinner

families, which are related - to pursue other interests.

"The sale is part of a long-term strategy to restructure and convert various family assets in order to allow us to pursue a wider range of business and philanthropic activities," Behnke explained.

Behnke said each of the families' eight members would be free to use the proceeds individually. He said his family planned to continue to invest in businesses but also would make some contribution to the foundation. He said it was not clear what other members might do.

Family members may not give as widely as before and may choose to contribute to different groups, he said. "But we'll still be there."

Skinner family members hope to complete the foundation re-structuring by the end of the year but will continue to review current grant applications in the meantime. However, no new applications will be accepted until the restructuring is complete.

The purchase price for Alpac was not disclosed. Alpac employs more than 1,300 in bottling operations and distribution facilities in five Western states and reported sales of $300 million in 1992. The deal should be completed by June 25.

It was not immediately clear how the sale would affect operations.

"At this point, there is no major consolidation that will take place the day of the sale," said Behnke.

However, one industry analyst was more cautious.

"You've got to anticipate that there would be changes," said George Thompson, a financial analyst with Prudential Securities. "Typically, the kind of change that takes place is that they would consolidate some of the facilities."