2003 press releases

Northern Foods plc (‘Northern’) has agreed to sell the share capital of Northern Foods (Ireland) Limited (‘NFIL’) and its subsidiaries to Maiden Acquisition Company Limited, a new company formed by Barry’s Tea (‘Barry’s Tea’) and Bank of Scotland Ireland. The sale is conditional only on clearance from the Competition Authority of Ireland.

The main subsidiaries of NFIL are Batchelors Limited (‘Batchelors’) and Beck Smith Limited (‘Beck Smith’), which manufacture and/or distribute a range of food and drink products in Ireland under brands such as Batchelors, Sqeez, Amigo, Picnic and Lustre. In addition products are distributed on behalf of other manufacturers under the brands of Green Giant, Old El Paso and Fox’s Biscuits.

The cash consideration to be received by Northern on completion consists of approximately €62m for share capital and around €33m in respect of accumulated cash balances. The aggregate cash amount will be applied to the reduction of group debt.

The net assets, excluding cash, to be disposed of will be €24 million, together with goodwill of €15 million. In the year to March 2003, the businesses generated a profit before tax of €7.9 million on turnover of €76 million.

Northern acquired Batchelors in 1986 for £13 million and Beck Smith in 1991 for £1.5 million.

Northern Foods finance director Sean Christie said: ‘This disposal continues our programme of adjusting Northern’s portfolio of activities to align the Group ever more closely with some of the fastest growing sectors of the UK food market. Other developments this year have included the purchase of the remaining 60 per cent of Solway Foods, the acquisition of the San Marco frozen pizza brand and the sale of Fox’s Confectionery. Although they are non-core to Northern, Batchelors and Beck Smith are very solid businesses and we are pleased to be selling them to an Irish company with a strong heritage and excellent brands. I am sure that they will continue to prosper under their new ownership.’