Greencore has agreed a deal to sell its bottled water business to Highland Spring for up to €19.6m.
Under the terms of the deal, Greencore will get €11.2m when the transaction is completed, €3.4m deferred until the second year after completition and up to €5m depending on the performance of the business.
Greencore Water supplies customer branded water in the UK and operates from two facilities at Campsie Springs in Scotland and Blaen Twyni in Wales.
It generated a loss before tax of €4.5m in 2008 while its net assets amounted to €20.1m.
Last year, Greencore reported deliberate concealment of costs at its water division. It said that within the 2008 results, an operating loss of €4m was recorded in the water business compared to a restated loss of €2.8m in 2007.
Greencore shares closed down three cent (2%) at €1.37 in Dublin this afternoon.
