UK dairy products company Arla Foods has announced that it is to sell the business and fixed assets of its London Food Service business to Dairy Crest, for a cash consideration of £4.0m (US$7.0), which will be used to reduce group borrowings.
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The business comprises sales to caterers, shops and households in London and the surrounding areas, distributed from operations at Ruislip, Bloomsbury and Nine Elms sites. Included in the sale is the freehold of the Nine Elms site.
In the 18 months to 30 September 2004, the business made an operating profit of £2.0m, and as at 30 September 2004 had gross assets of £3.2m.
Dairy Crest said the acquisition is consistent with its strategy to complete infill acquisitions for its household business and will result in one-off cash acquisition integration costs of around £3m in the current financial year.
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