Richmond, BC-based food processor Premium Brands has announced the completion of a series of transactions involving the sale of non-core assets, which have generated proceeds of C$5.6m (US$3.55m).
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A nominal gain on the transactions will be recorded in the first quarter of 2002.
The majority of the proceeds relate to the sale of Premium Brands’ 40% equity interest in hog producer Peace Pork Inc, with the balance coming from the sale of redundant capital assets.
The company explained that the up front cash of C$2.8m generated by these transactions will be used to pay down debt.
“We are continuing to focus on the reallocation of capital from commodity to specialty niche food businesses and on the pay down of debt so as to increase our financial flexibility,” stated George Paleologou, company president.
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By GlobalData“Over the next twelve to twenty four months we expect to raise an additional C$22m in proceeds from the sale of assets and investments that are not contributing to the company’s cash flow and C$5m from non-core businesses.”
