Greencore Group PLC
13 July 2001
GREENCORE GROUP PLC
CONTACT: MR. B.J. POWER TELEPHONE 353 1 605 1029
FAX 353 1 605 1104
DISPOSAL OF HAZLEWOOD'S HORTICULTURE BUSINESS
BY GREENCORE FOR Euro25M
Greencore Group plc ('Greencore') announces that it has to-day sold the U.K.
horticulture business, Van Heyningen Brothers Limited, and its Portuguese
subsidiary, Hectare Agro Industria SA, (together 'VHB'), acquired as part of
its acquisition of Hazlewood Foods ('Hazlewood') in January 2001, to Humber
Growers Limited ('Humber'), a leading U.K. grower of fresh produce.
VHB is a grower and trader of tomatoes, herbs and cress, operating from seven
sites in the U.K. and one in Portugal. As part of the transaction, Greencore
will retain ownership of the freehold interest in one of the sites, at
Littlehampton, Sussex, which it will rent to Humber. Greencore considers this
site to have development potential.
The consideration receivable is as follows:
* STG£13.092m (Euro21.6m) at completion, by means of cash payment and
repayment of intercompany loans; and
* STG£2.0m (Euro3.3m) by not later than 24th September 2002.
The value of the net assets at disposal was STG£15.1m (Euro24.9m). VHB made
profits before tax of STG£1.66m (Euro2.7m) on turnover of STG£71.3m (Euro
117.9m) in the year ended 31 December, 2000.
The proceeds will be employed by Greencore to reduce the indebtedness it
incurred to finance its acquisition of Hazlewood.
Commenting on the disposal, Greencore Director, Patrick Kennedy, said 'When we
acquired Hazlewood we said we would implement a disposal programme and this
sale is part of that strategy. We will be making further disposals over the
next year in furtherance of reshaping our Group'.
B.J. POWER,
DIRECTOR & SECRETARY,
GREENCORE GROUP PLC,
ST. STEPHEN'S GREEN HOUSE,
EARLSFORT TERRACE,
DUBLIN, 2. 13th July, 2001.
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