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                                  UNITED STATES

                      SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 8-K



                        PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934





Date of Report (date of earliest event reported):  September 19, 1997 
                                                   (September 4, 1997)
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                                  Borden, Inc.
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             (Exact name of registrant as specified in its charter)




      New Jersey                          I-71                   13-0511250
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(State or other jurisdiction    (Commission file number)       (IRS Employer 
   of incorporation)                                        Identification No.)



    180 East Broad Street, Columbus, Ohio                 43215-3799
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   (Address of principal executive offices)               (zip code)



Registrant's telephone number, including area code:       (614)-225-4000
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ITEM  2. Disposal of Assets.


         On September 4, 1997, Borden, Inc. ("the Company") completed the
         previously announced transaction to sell the stock of Borden/Meadow
         Gold Dairies Holdings, Inc. and its subsidiaries ("Dairy") to
         Mid-America Dairymen, Inc. for $435 million, subject to certain
         adjustments (the "Transaction"). Under the terms of the Transaction,
         Mid-America Dairymen, Inc. acquired the Meadow Gold, Viva, Lite Line
         and Mountain High brand names, and a license to use the Borden and
         Elsie the Cow trademarks in the United States on certain dairy
         products. Proceeds of the Transaction were used by Borden to pay down
         debt.

ITEM  7. Financial Statements and Exhibits.

     b.  Pro forma condensed consolidated and combined financial statements
         (unaudited).

         The following unaudited pro forma condensed consolidated and combined
         consolidated financial statements are filed with this report:

                                                                                     
                Pro Forma Condensed Consolidated Balance Sheet at June 30, 1997.......  4
                   Pro Forma Condensed Consolidated Statements of Income:
                     Six Months Ending June 30, 1997..................................  6
                     Year Ending December 31, 1996....................................  7
                Pro Forma Condensed Combined Balance Sheet at June 30, 1997...........  8
                Pro Forma Condensed Combined Statements of Income:
                     Six Months Ending June 30, 1997.................................. 10
                     Year Ending December 31, 1996.................................... 11
The consolidated statements present the Company after the effect of the sales of (i) the Company's former salty snacks business to Wise Holdings, Inc. and its subsidiaries ("Wise") and (ii) the Company's former domestic and international foods business to Borden Foods Holdings Corporation and its subsidiaries ("Foods"). The Company, Wise and Foods are controlled by BW Holdings, LLC ("BWHLLC"). The consolidated financial statements are those of the Company, which is the SEC Registrant. Combined financial statements are included herein to present the Company on a combined historical basis, including the financial position and results of operations of Wise and Foods. The combined financial statements are included because management of the Company continues to control significant financial and managerial decisions with respect to Wise and Foods. The combined financial statements do not reflect push-down accounting and therefore present financial information on a basis consistent with that on which credit was originally extended to the Company. The following pro forma condensed consolidated and combined balance sheets as of June 30, 1997 and the pro forma condensed consolidated and combined statements of income for the six month period then ended and the year ended December 31, 1996 give effect to the Transaction. The adjustments related to the condensed consolidated and combined balance sheets assume the transaction was consummated at June 30, 1997, while the adjustments to the pro forma condensed consolidated and combined income statements assume the Transaction was consummated at the beginning of the periods presented. The unaudited pro forma consolidated and combined financial statements have been prepared based on assumptions deemed proper by the Company. The unaudited pro forma condensed consolidated and combined financial statements presented herein are shown for illustrative purposes only and are not necessarily indicative of the future financial position or future results of operations of the Company or of the financial position or results of operations of the Company that would have actually occurred had the transaction been in effect as of the date or for the periods presented. 2 3 c. Exhibits 2.1 Stock Purchase and Merger Agreement, dated May 22, 1997 between Borden, Inc. and Mid America Dairymen, Inc. incorporated herein by reference to Exhibit 10 to Form 10-Q dated June 30, 1997. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. BORDEN, INC. Date: September 19, 1997 s/ ------------------------------- Executive Vice President and Chief Financial Officer (Principal Financial Officer & Duly Authorized Signing Officer) 3 4 BORDEN, INC. PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET (unaudited) June 30, 1997
(In millions) Pro Forma Adjustments - -------------------------------------------------------------------------------------------------------- Sale Other As Reported Adjustments(a) Adjustments Pro Forma - -------------------------------------------------------------------------------------------------------- Cash and cash equivalents $ 97.5 $ 364.9 $ (364.9)(b) $ 97.5 Net receivables 328.2 328.2 Finished and in-process goods 133.6 133.6 Raw materials and supplies 66.2 66.2 Deferred income taxes 134.8 (68.5) 66.3 Other current assets 42.1 42.1 Net assets of discontinued operations 172.9 (172.9) - -------- -------- -------- -------- Total current assets 975.3 123.5 (364.9) 733.9 Investments in and advances to affiliates 108.5 105.5 Deferred income taxes 159.7 159.7 Other assets 70.0 70.0 Assets sold under contractual arrangement 676.3 676.3 -------- -------- -------- -------- Total investments and other assets 1,014.5 - - 1,014.5 Land 27,6 27.6 Buildings 146.3 146.3 Machinery and equipment 742.4 742.4 -------- -------- -------- -------- 916.3 - - 916.3 Less: Accumulated depreciation (440.8) (440.8) -------- -------- -------- -------- Total property and equipment 475.5 - - 475.5 Intangibles 61.5 61.5 -------- -------- -------- -------- Total assets $2,526.8 $ 123.5 $ (364.9) $2,285.4 ======== ======== ======== ======== - -------------------------------------------------------------------------------------------------------- See notes to pro forma financial statements
4 5 BORDEN, INC. PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET (unaudited) June 30, 1997
(In millions) Pro Forma Adjustments - ---------------------------------------------------------------------------------------------------------- Sale Other As Reported Adjustments(a) Adjustments Pro Forma - ---------------------------------------------------------------------------------------------------------- Debt payable within one year $ 108.6 $ - $ - $ 108.6 Accounts and drafts payable 200.1 200.1 Income taxes 245.2 245.2 Other current liabilities 436.2 (40.0) 396.2 -------- -------- -------- -------- Total current liabilities 990.1 (40.0) 950.1 Liabilities sold under contractual arrangement 434.7 434.7 Long-term debt 914.0 (364.9)(b) 549.1 Non-pension postemployment benefits 251.0 (14.4) 236.6 Other long-term liabilities 93.2 (1.5) 91.7 -------- -------- -------- -------- Total noncurrent liabilities 1,692.9 (15.9) (364.9) 1,312.1 Preferred stock 614.4 614.4 Common stock 2.0 2.0 Paid in capital 382.1 382.1 Receivable from parent (443.6) (443.6) Accumulated translation adjustment (36.2) (36.2) Minimum pension liability and other (109.2) 30.0 (79.2) Retained earnings(deficit) (565.7) 149.4 (416.3) -------- -------- -------- -------- Total equity (156.2) 179.4 - 23.2 -------- -------- -------- -------- Total liabilities and equity $2,526.8 $ 123.5 $ (364.9) $2,285.4 ======== ======== ======== ======== - ---------------------------------------------------------------------------------------------------------- See notes to pro forma financial statements
5 6 BORDEN, INC. PRO FORMA CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED) FOR THE SIX MONTHS ENDING JUNE 30, 1997
(In millions, except per share data) Pro Forma Adjustments - ---------------------------------------------------------------------------------------------------------- Sale Other As Reported Adjustments(a) Adjustments Pro Forma - ---------------------------------------------------------------------------------------------------------- Net sales $ 946.0 $ - $ - $ 946.0 Cost of goods sold 692.8 692.8 ------- ------- ------- ------- Gross profit margin 253.2 - - 253.2 Distribution expense 36.2 36.2 Marketing expense 75.5 75.5 General & administrative expense 83.7 10.0(c) 93.7 ------- ------- ------- ------- Operating income 57.8 (10.0) 47.8 Interest expense 47.8 (14.0)(b) 33.8 Affiliated interest income (11.4) (11.4) Other (income) (12.7) (0.1)(d) (12.8) ------- ------- ------- ------- Income from continuing operations before income taxes 34.1 - 4.1 38.2 Income tax expense 15.6 1.6 17.2 ------- ------- ------- ------- Income from continuing operations $ 18.5 $ - $ 2.5 $ 21.0 ======= ======= ======= ======= Share Data: Per share income from continuing operations $ 0.09 $ 0.11 Average number of common shares outstanding during the period 199.0 199.0 - ---------------------------------------------------------------------------------------------------------- See notes to pro forma financial statements
6 7 BORDEN, INC. PRO FORMA CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED) FOR THE PERIOD ENDING DECEMBER 31, 1996
(In millions, except per share data) Pro Forma Adjustments - ------------------------------------------------------------------------------------------------------------- Sale Other As Reported Adjustments(a) Adjustments Pro Forma - ------------------------------------------------------------------------------------------------------------- Net sales $ 3,681.3 $ (910.9) $ - $ 2,770.4 Cost of goods sold 2,660.3 (696.0) 1,964.3 --------- --------- --------- --------- Gross profit margin 1,021.0 (214.9) - 806.1 Distribution expense 235.4 (103.9) 131.5 Marketing expense 410.2 (59.3) 350.9 General & administrative expense 177.6 (23.8) 10.0(c) 163.8 Gain on divestiture (62.0) (62.0) --------- --------- --------- --------- Operating income 259.8 (27.9) (10.0) 221.9 Interest expense 112.8 (27.4)(b) 85.4 Other expense (income) (8.7) 0.4 (0.4)(d) (8.7) --------- --------- --------- --------- Income from continuing operations before income taxes 155.7 (28.3) 17.8 145.2 Income tax expense 80.2 (11.2) 6.9 75.9 --------- --------- --------- --------- Income from continuing operations $ 75.5 $ (17.1) $ 10.9 $ 69.3 ========= ========= ========= ========= Share Data: Per share income from continuing operations $ 0.38 $ 0.35 Average number of common shares outstanding during the period 199.0 199.0 - ------------------------------------------------------------------------------------------------------------- See notes to pro forma financial statements
7 8 BORDEN, INC. AND AFFILIATES PRO FORMA CONDENSED COMBINED BALANCE SHEET (UNAUDITED) AS OF JUNE 30, 1997
(In millions) Pro Forma Adjustments - ------------------------------------------------------------------------------------------------------------- Sale Other As Reported Adjustments(a) Adjustments Pro Forma - ------------------------------------------------------------------------------------------------------------- Cash and cash equivalents $ 113.9 $ 364.9 $ (364.9)(b) $ 113.9 Net receivables 510.2 510.2 Finished and in-process goods 286.2 286.2 Raw materials and supplies 125.4 125.4 Deferred income taxes 165.2 (68.5) 96.7 Other current assets 75.5 75.5 Net assets of discontinued operations 172.9 (172.9) - -------- -------- -------- -------- Total current assets 1,449.3 123.5 (364.9) 1,207.9 Investments in and advances to affiliates 108.5 108.5 Deferred income taxes 251.1 251.1 Other assets 86.3 86.3 -------- -------- -------- -------- Total investments and other assets 445.9 - - 445.9 Land 48.7 48.7 Buildings 317.9 317.9 Machinery and equipment 1,316.8 1,316.8 -------- -------- -------- -------- 1,683.4 - - 1,683.4 Less: Accumulated depreciation (879.4) (879.4) -------- -------- -------- -------- Total property and equipment 804.0 - - 804.0 Intangibles 435.6 435.6 -------- -------- -------- -------- Total assets $3,134.8 $ 123.5 $ (364.9) $2,893.4 ======== ======== ======== ======== - ------------------------------------------------------------------------------------------------------------- See notes to pro forma financial statements
8 9 BORDEN, INC. AND AFFILIATES PRO FORMA CONDENSED COMBINED BALANCE SHEET (UNAUDITED) AS OF JUNE 30, 1997
(In millions) Pro Forma Adjustments - -------------------------------------------------------------------------------------------------- Sale Other As Reported Adjustments(a) Adjustments Pro Forma - -------------------------------------------------------------------------------------------------- Debt payable within one year $ 121.3 $ - $ - $ 121.3 Accounts and drafts payable 342.4 342.4 Income taxes 248.9 248.9 Other current liabilities 621.3 (40.0) 581.3 -------- -------- -------- -------- Total current liabilities 1,333.9 (40.0) - 1,293.9 Long-term debt 927.9 (364.9)(b) 563.0 Non-pension postemployment 273.4 (14.4) 259.0 Other long-term liabilities 141.0 (1.5) 139.5 -------- -------- -------- -------- Total noncurrent liabilities 1,342.3 (15.9) (364.9) 961.5 Preferred stock 614.4 614.4 Common stock 2.0 2.0 Paid in capital 685.3 685.3 Receivable from parent (443.6) (443.6) Affiliate's interest in subsidiary 87.6 87.6 Accumulated translation adjustment (149.2) (149.2) Minimum pension liability and other (109.2) 30.0 (79.2) Retained earnings(deficit) (228.7) 149.4 (79.3) -------- -------- -------- -------- Total equity 458.6 179.4 - 638.0 -------- -------- -------- -------- Total liabilities and equity $3,134.8 $ 123.5 $ (364.9) $2,893.4 ======== ======== ======== ======== - -------------------------------------------------------------------------------------------------- See notes to pro forma financial statements
9 10 BORDEN, INC. AND AFFILIATES PRO FORMA CONDENSED COMBINED INCOME STATEMENT (UNAUDITED) FOR THE PERIOD ENDING JUNE 30, 1997
(In millions) Pro Forma Adjustments - ------------------------------------------------------------------------------------------------ Sale Other As Reported Adjustments(a) Adjustments Pro Forma - ------------------------------------------------------------------------------------------------ Net sales $1,935.1 $ - $ - $1,935.1 Cost of goods sold 1,289.1 1,289.1 -------- -------- -------- -------- Gross profit margin 646.0 - - 646.0 Distribution expense 95.7 95.7 Marketing expense 346.6 346.6 General & administrative expense 143.8 10.0(c) 153.8 -------- -------- -------- -------- Operating income 59.9 - (10.0) 49.9 Interest expense 48.4 (14.0)(b) 34.4 Other (income) (20.1) (0.1)(d) (20.2) -------- -------- -------- -------- Income from continuing operations before income taxes 31.6 - 4.1 35.7 Income tax expense 14.3 1.6 15.9 -------- -------- -------- -------- Income from continuing operations $ 17.3 $ - $ 2.5 $ 19.8 ======== ======== ======== ======== - ------------------------------------------------------------------------------------------------ See notes to pro forma financial statements
10 11 BORDEN, INC. AND AFFILIATES PRO FORMA CONDENSED COMBINED INCOME STATEMENT (UNAUDITED) FOR THE PERIOD ENDING DECEMBER 31, 1996
(In millions) Pro Forma Adjustments - ------------------------------------------------------------------------------------------------ Sale Other As Reported Adjustments(a) Adjustments Pro Forma - ------------------------------------------------------------------------------------------------ Net sales $5,765.1 $ (910.9) $ - $4,854.2 Cost of goods sold 3,933.8 (696.0) 3,237.8 -------- -------- -------- -------- Gross profit margin 1,831.3 (214.9) - 1,616.4 Distribution expense 354.9 (103.9) 251.0 Marketing expense 990.3 (59.3) 931.0 General & administrative expense 282.2 (23.8) 10.0(c) 268.4 Gain on divestiture (55.9) (55.9) -------- -------- -------- -------- Operating income 259.8 (27.9) (10.0) 221.9 Interest expense 116.4 (27.4)(b) 89.0 Other expense (income) (13.3) 0.4 (0.4)(d) (13.3) -------- -------- -------- -------- Income from continuing operations before income taxes 156.7 (28.3) 17.8 146.2 Income tax expense 74.8 (11.2) 6.9 70.5 -------- -------- -------- -------- Income from continuing operations $ 81.9 $ (17.1) $ 10.9 $ 75.7 ======== ======== ======== ======== - ------------------------------------------------------------------------------------------------ See notes to pro forma financial statements
11 12 Notes to Pro Forma Financial Statements - --------------------------------------- a) Reflects the elimination of the Dairy business and the receipt of $435 million of proceeds net of a $40 million deposit received in May 1997, $16.6 million of compensation expense paid on the settlement of stock options, $5.3 million of proceeds attributable to the minority shareholders and other closing costs. The June 30, 1997 income statements already classify Dairy as a discontinued operation. b) Reflects the repayment of long-term debt with cash proceeds from the Transaction and the associated interest savings. The weighted average interest rate used to compute the interest savings was 7.7% for the six months ended June 30, 1997 and 7.5% for the twelve months ended December 31, 1996. c) Reflects the Company's partial settlement loss that was not recognized in the gain calculation. d) Reflects the elimination of minority interest in the results of the Dairy business. 12