Finnish food group Raisio has sold its UK snack bar business, Halo Foods, to Dutch investors Nimbus.
The sale includes factories in Newport and Swindon, as well as Raisio’s Dormen nuts brand.
Financial terms of the agreement, which was signed yesterday (12 July), were not disclosed. However, Raisio said it will record a loss of approximately EUR19m (US$21m) for the divestment of Halo Foods business and approximately EUR1m as restructuring costs related to the UK snack and cereal business in its second-quarter EBIT.
Halo Foods’ business and 300 employees in the UK have been transferred to Nimbus, Raisio said.
CEO Matti Rihko said the move will enable the group to withdraw from manufacturing of snack bars marketed to consumers under partner brands and increase its focus on the development and marketing of proprietary branded products. “For Raisio, it is important to expand the range of its branded products in line with consumer needs, not to produce itself all the products in the range,” Rihko said.
Halo Foods became part of Raisio through the Glisten acquisition in 2010. The company is a manufacturer of its partners’ branded products.
Raisio had centralised the production of its snack bars to Newport and the packaging of nibbles and nuts to the Swindon factory. Halo Foods generated a turnover of EUR18m in the first half of this year.