UK: Greencore sells Uniq desserts facility to Müller
The disposal is expected to complete at the start of January 2013
Ireland-based food maker Greencore has struck a deal to sell a chilled desserts facility in the UK to yoghurt giant Müller.
Greencore has sold the plant, which it attained when it acquired UK own-label firm Uniq last year, for GBP4.3m (US$6.7m).
The site, in Minsterley in Shropshire, has manufactured Cadbury chilled desserts for Müller, a co-packing agreement that will be ended.
The disposal is expected to be finalised in January, by which time the transfer of production of other premium dessert lines at the site to a second facility in Evercreech will have been completed.
Uniq overhauled its loss-making desserts business in 2010, but in August last year, before it was acquired from Greencore, the company jettisoned the unprofitable business with the loss of 350 jobs.
Investec analyst Nicola Mallard said the deal announced today should mark the "satisfactory and relatively clean end to the Uniq desserts saga".
"Given the small sums of money involved, and the immaterial profit contribution from the co-pack arrangement, this deal will have no material impact on the P&L or the balance sheet, but brings to a satisfactory conclusion the restructuring of the desserts operations acquired with Uniq," she said.
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