UK food and soft drinks firm Nichols has announced the sale of its food subsidiary for £11.6m (US$21.6m) to Gary Unsworth, former group managing director of Nichols.
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Proceeds from the sale, which includes Nichols Foods and an associated freehold property, will be used to reduce group borrowings, leaving Nichols broadly debt free, the company said.
The sale of Nichols Foods represents the final stage of Nichols’ strategic review and is aimed at enabling the company to focus on the future development and marketing of its soft drinks business, the Vimto brand and the expansion of its dispense business.
In the year to 31 December 2003, Nichols Foods contributed a profit before tax of £1.45m on turnover of £48.8m.
Nichols Foods makes branded and private label products such as powdered beverages and soups, whiteners, dilutable drinks, single serve sauce sachets, jams and fruit pie fillings for the UK foodservice, vending and retail sectors.
