2003 press releases

Northern Foods Grocery Group Limited, a subsidiary of Northern Foods plc (‘Northern’), has sold the Fox’s Confectionery business in Leicester to Big Bear Limited, a new company formed by a management buy-in team.

Northern Foods Grocery Group will receive consideration of £7.0m together with the value of book debts of £2.4m (total value of transaction: £9.4m). The net assets disposed of were £9.3m, together with goodwill of £5.4m.

Fox’s Confectionery produces a number of small but well-known brands, including Fox’s Glacier Mints and Fruits, Paynes Poppets, Just Brazils and XXX Mints.

The Fox’s Confectionery workforce at Leicester will transfer with the business to the new owners.

Northern acquired the Fox’s Glacier Mints business from Nestlé UK for £8.0m in 2001, and subsequently integrated it with the Paynes confectionery operation which it had purchased for £9.8m in 1998. The Lift Lemon Tea brand, which was acquired as part of Paynes, was sold to Hicks, Muse, Tate & Furst for £8.2m in 2001. Production of the Paynes confectionery brands was transferred to Leicester last year and Northern retains the valuable Paynes freehold factory site in Croydon, which is currently for sale.

This disposal continues Northern’s programme of adjusting its portfolio of activities to align the Group ever more closely with some of the fastest growing sectors of the food market, and to increase its focus on leading retailers. Other developments this year have included the purchase of the remaining 60% of Solway Foods and the acquisition of the San Marco frozen pizza brand.