Norwegian food group Rieber & Søn has signed an agreement to sell its King Oscar business.
The division, which was demerged and incorporated into the firm’s daughter company King Oscar AS in October, is to be bought by Nordic acquisition fund Procuritas Capital Investors.
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The divestment is part of a core review being carried out under the group’s ‘Future Programme’ which it said today (25 May) prioritises a stronger focus on core business.
The transaction includes the entire business unit, but Rieber & Søn will retain a 10% shareholding. Rieber & Søn’s sales organisations in Norway, Poland, the Czech Republic and Slovakia will continue to be responsible for the sale of King Oscar’s products in these areas.
The sale price consists of a fixed amount and a performance-related amount. The latter amount is based on the results recorded by King Oscar in 2010. The sale price will be no less than NOK230m (US$34.7m) and no more than NOK255m.
King Oscar will be taken over with accounting effect from this month, with implementation of the transfer expected to take place in early or mid-June this year.
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By GlobalDataThe transaction is not subject to the approval of the competition authorities.
As a result of the sale Rieber has lowered its EPS forecast for 2010 to NOK3.65 from NOK4.
