Statement regarding Water bus

RNS Number : 7636C

Greencore Group PLC

19 November 2009

 

GREENCORE GROUP PLC

CONTACT:    MS. C.M. BERGIN    TELEPHONE: [phone]

        FAX: [phone]

GREENCORE GROUP PLC ("GREENCORE") - DISPOSAL OF BOTTLED WATER BUSINESS

Greencore Group plc ("Greencore" or "the Group") today announces that it has agreed to sell its bottled water business ("Greencore Water") to Highland Spring Limited ("Highland Spring") (the "Disposal"). 

Greencore Water is a supplier of customer branded water in the UK, operating from two facilities located at Campsie Springs in west Scotland and Blaen Twyni in Wales. In the year ended 25 September 2008, Greencore Water generated a loss before taxation of £3.8m (€4.5m). As at 28 September 2008, Greencore Water's net assets were £15.9m (€20.1m) and gross assets amounted to £21.2m (€26.8m).

Under the terms of the agreement, Greencore will receive up to £17.5m (€19.6m) in consideration, £10.0m (€11.2m) of which is payable upon completion, £3.0m (€3.4m) deferred until the second anniversary of completion and up to £4.5m (€5.0m) contingent upon the future performance of the business.

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

For Further Information, Please Contact

Eoin Tonge	Group Capital Markets Director	Tel: [phone]
Billy Murphy or Anne Marie Curran	Drury Communications	Tel: [phone]
Elizabeth Rous or Rob Greening	Powerscourt	Tel: [phone]

Greencore Group

·         A leading international producer of convenience food, as well as an established ingredients supplier with operations in Ireland, the UK, the US, The Netherlands and Belgium 

·         Strong market leadership positions in the UK convenience food market across sandwiches, chilled prepared meals, chilled soups and sauces, ambient sauces & pickles, cakes & desserts, mineral water and Yorkshire puddings

·         Extending presence outside the UK with fast-growing convenience food businesses in the US, The Netherlands and Ireland

·         The leading malt producer in Ireland, the UK and Belgium

C.M. BERGIN

GROUP COMPANY SECRETARY

GREENCORE GROUP PLC

NO. 2 NORTHWOOD AVENUE 

NORTHWOOD BUSINESS PARK 

SANTRY 

DUBLIN 9 

          19th November, 2009   

 

END

 

 

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