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Greencore To Sell Bottled Water Business

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Proceeds from the disposal to be used to reduce group borrowings

Greencore Group, an international producer of convenience food, and an ingredients supplier with operations in Ireland, the UK, the US, The Netherlands and Belgium, has agreed to sell its bottled water business to Highland Spring.

Greencore Water is a supplier of customer branded water in the UK, which operates from two facilities located at Campsie Springs in west Scotland and Blaen Twyni in Wales. In the year ended September 25, 2008, Greencore Water generated a loss before taxation of GBP3.8m. As of September 28, 2008, the company’s net assets were GBP15.9m and gross assets amounted to GBP21.2m.

Under the terms of the agreement, Greencore will receive up to GBP17.5m in consideration, GBP10m of which is payable upon completion, GBP3m deferred until the second anniversary of completion and up to GBP4.5m subject to the future performance of the business.

Completion of the disposal, which will be executed by means of an asset sale and the sale of shares in a subsidiary company, is expected to occur on or before April 30, 2010. The proceeds from the disposal will be used to reduce group borrowings.

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Thursday, September 21, 7:10 am

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