UK snack food firm Zetar has sold a loss-making snacks business to the unit’s chief executive in a deal worth almost GBP2.7m (US$4m).
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Zetar, which makes a range of private-label snacks and confectionery products, said today (1 May) it had offloaded The Baked Snacks Company to a business controlled by the unit’s boss Mobeen Mehdi.
Mehdi’s business, Tilbury Property, has made an initial cash payment of GBP590,000 – some GBP100 for 100% of The Baked Snacks Company, with the rest to pay an inter-company loan.
Tilbury will pay GBP2.09m in instalments over the next three years.
The Baked Snacks Company makes a range of low-fat crisps and biscuits. In the year ended 30 April 2008, BSC made sales of around GBP2m and an adjusted operating loss of GBP900,000.
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By GlobalDataZetar said the sale would help the business cut debts. “The disposal removes the company’s only loss-making subsidiary, enhancing its earnings and allowing management to refocus solely on continuing to grow the profitable confectionery and natural and premium snacks divisions,” Zetar said.
