Dairy Crest Group Plc. (DCG.L) on Friday said it has received a binding offer from Montagu Private Equity SAS regarding the proposed disposal of the entire issued share capital of St Hubert, a French producer of standard, low fat and innovative spreads, for a consideration of 430 million euros or 344 million pounds payable in cash.
St Hubert was purchased in January 2007 for 370 million euros. Since the acquisition, Dairy Crest has increased the revenue and EBIT for St Hubert by 35 percent and 45 percent, respectively. The transaction follows Dairy Crest's announcement on March 9 of a strategic review of St Hubert.
St Hubert has been a successful part of the Dairy Crest group with consistent increases in its market share and profitability.
However, Dairy Crest said it "has been unable to make additional synergistic acquisitions in Continental Europe as it envisaged at the time of the acquisition and it believes that greater value may be generated for shareholders through the proposed disposal of St Hubert."
Proceeds from the deal will initially be used to reduce net debt.
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by RTT Staff Writer
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