Exel PLC sells loss-making German deep frozen food distribution business

Exel PLC said it has sold its loss-making German deep frozen
food distribution business to a management buy out team and added it is
restructuring its other chilled operations in Germany, having given notice of
early contract termination to its major customer, Burger King, in September.
The net cash costs relating to the sale and restructuring will be some 6.3
mln stg. After taking account of net assets in these operations, there will be a
further loss on disposal of some 9.2 mln, Exel said.
In addition, goodwill of 17.7 mln stg, previously written off to reserves,
will be written off through the profit and loss account, it added.
Exel chief executive John Allan said: “Following the sale last year
of the loss-making French Chill operation, this action completes the
restructuring of the loss-making European network operations which were
neither strategically nor commercially attractive to Exel.”
“Our management can now concentrate on developing our profitable German
activities and continue to strengthen our logistics businesses in Europe,” he
said.