Cleaning products firm sells European business for £12.5m
Manchester frim McBride has completed the sale of its European personal care liquids business to Royal Sanders Group for £12.5m in cash.
The Middleton business manufactures and supplies private label products for the household and personal care market.
It operates manufacturing sites in Manchester, Barrow, Hull and Bradford.
Proceeds from the sale will be used to pay down group net debt and settle transaction costs.
The deal was announced in July and has now been completed.
In the twelve months to 30 June 2018 the European Personal Care Liquids business, which has two manufacturing sites at Bradford and in Belgium, generated revenues of £56.2m with an adjusted operating loss of £1.5m.
Proceeds of the sale will be used to pay down the group’s net debt and settle transaction costs.
Chief executive Rik De Vos said: “With the sale of the European personal care liquids business, the group is now a focused household business with a clear strategy to deliver sustainable profitable growth.
“The transaction also enables colleagues working at the Bradford and Belgium sites to develop as part of a dedicated personal care manufacturer of greater scale and I would like to personally thank them for their efforts within McBride and wish them every success for the future.”
Paul Mann, Jonathan Ross, Bart Vanderstraete, Alison Treliving and Hannah Crosland from law firm Squire Patton Boggs advised McBride, as did a team from Deloitte, comprising Rob Howells, Andy Westbrook and Abi Godfrey.
Hill Dickinson’s Ian Gillis and Harriet Watson advised Royal Sanders.
In July the group issued a warning that profits would fall below target.
It said: “Following weaker than expected sales levels in May and June 2018, the group now expects full year adjusted profit before tax to be marginally below the lower end of analyst expectations.”
