Robert Wiseman & Sons has sold GBP45.3m (US$64.7m) of assets to SG Leasing, a subsidiary of Societe Generale, for cash.
The transaction, entered into with the subsidiary of UK milk processor Robert Wiseman Dairies, included the sale of commercial vehicles, plant and machinery at a price equal to their net book value, the dairy said yesterday (24 May).
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A spokesperson for Robert Wiseman told just-food that the transaction will allow the firm to wipe some debt from its balance sheet.
“Sale and leaseback arrangements are designed to help finance balance sheets for the business. They are effectively a means by which you can get this debt off the balance sheet and to make the balance sheet work a bit harder for you, the spokesperson said.
“It is not about reallocating cash as we will still be paying for the assets and there will still be a need for us to pay for the assets, it’s just about us managing our cash a bit more efficiently. It’s a programme that works very well for us in terms of running the business in an efficient manner,” he added.
Following completion of the sale, the relevant assets were subsequently leased back to the group by Societe Generale. An option agreement allows the firm to reacquire the assets at a later date.
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By GlobalDataThe assets will continue to be included within the group’s tangible fixed assets at their previous net book value with an equivalent balance being owed to Societe Generale.
