Greencore Group plc has announced that it has agreed to sell its bottled water business – Greencore Mineral Water – to Highland Spring.
Established in 1987, Greencore Mineral Water is the UK's largest provider of customer brand mineral water, supplying over 200 million litres to UK supermarket retailers as well as to wholesalers and foodservice customers around the country.
It operates from two facilities located at Campsie Springs in west Scotland and Blaen Twyni near Swansea in Wales. In the year ended 25 September 2008, Greencore Water generated a loss before taxation of £3.8m. As at 28 September 2008, Greencore Water's net assets were £15.9m and gross assets amounted to £21.2m.
Under the terms of the agreement, Greencore will receive up to £17.5m in consideration, £10m of which is payable upon completion, £3.0m deferred until the second anniversary of completion and up to £4.5m contingent upon the future performance of the business.
Completion of the disposal, which will be effected by means of an asset sale and the sale of shares in a subsidiary company, is expected to occur on or before 30 April 2010. The proceeds from the disposal will be used to reduce Group borrowings.
Through this deal, Highland Spring will become the leading supplier of bottled water in the UK.
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