Tag: Packaging

Christian Salvesen today announces that it has signed a definitive
agreement for the sale of its frozen vegetable business, Christian
Salvesen Foods (“the business”), comprising stock, plant, machinery,
people and contracts to Pinguin Foods UK Limited, a subsidiary of
Pinguin NV (“Pinguin”) for estimated total cash consideration payable
at completion of GBP 17.2m. The consideration is subject to adjustment
for the actual amount of stock at the date of closing. In addition,

Christian Salvesen will continue to provide storage and distribution
services to the business on normal commercial terms for a minimum
term of sixteen months. The transaction is expected to close in
mid-September following employee consultation.

The business consists of vegetable processing, packing and storage
activities at three sites in Lincolnshire, located in Bourne, North
Thoresby and Easton. In the year ended 31st March 2007 the business
reported revenues of GBP 44.6m and operating profit of GBP 0.7m; operating
profit included exceptional net income of GBP 0.4m and an allocation of
GBP 0.8m of Group overheads. The gross assets of the business were
GBP 29.5m at 31st March 2007.

The impact of the transaction on earnings is expected to be broadly
neutral. The proceeds will be used for general working capital purposes.

Christian Salvesen is also releasing its first Interim Management
Statement.

Overall, for the financial year to date, the Group’s continuing business
has traded broadly in-line with our expectations, which are weighted
to the second half of the year.