Food group Glanbia is to sell its UK food service distribution business Glanbia Food Service to Peter's Food Service.
The company being sold distributes chilled and fresh food products and had a turnover of around €156m last year. The company employs 500 staff. The consideration was not disclosed, but it is understood to be below the £5m mark.
Glanbia says the UK food service sector is separating into two distinct operations - manufacturing and logistics. Glanbia's group managing director John Moloney said the deal followed a strategic decision to exit UK food service distribution, and allowed Glanbia to focus on its strengths as a food manufacturer. The company has agreed supply deals with the new owner of the company.
The company has been involved in a process of exiting loss-making businesses in the UK, and closed its sliced meats business earlier this year. This process is understood to be almost complete.
Glanbia will record a loss of around €24m on today's deal, mainly because of a write-back of goodwill previously written off against reserves. This will be charged as an exceptional item in the 2002 accounts.
