French sweet on RGF’s sugar arm
REAL Good Food, the troubled baking ingredients group based in Liverpool, is set to sell its sugar business for £34m.
The listed company said it planned to sell Napier Brown, the country’s third-largest sugar distributor, to French co-operative business Tereos Group for £34m, subject to shareholder approval.
Napier Brown distributes sugar throughout the UK under two brands, Napier Brown and Whitworths Sugar and operates from two sites at Normanton, West Yorkshire, and Stallingborough, Lincolnshire.
Explaining the rationale for the disposal, Real Good Food said, the proceeds will help clear debt and provide focus for investment in its other divisions.
It said upcoming changes to the sugar production market were the driving force behind the sale.
Executive chairman Pieter Totté said: “I am proud of what we have achieved in building the Napier Brown business and expanding its customer base and developing its supply chain. However, the changes taking place within the European sugar market mean that the future of this business is best served by it becoming part of an international production group.
“We believe Tereos is the best choice for both customers and employees. This transaction will allow us to focus all our resources on the continued growth of our remaining businesses. I would like to thank the staff and employees for their contribution over the years.”
Last year, the conpany failed in a case against its largest competitor, British Sugar, which it accused of abusing of its dominant market position after it temporarily withdrew supplies to Napier Brown in February 2014.
Tereos is the world’s fifth-largest sugar group. It has 42 industrial sites and employs 24,000 people across four continents. Its revenues in 2013-14, were €4.7bn.
