29th Apr 2015 07:52
LONDON (Alliance News) - Real Good Food PLC shares gained ground on Wednesday morning after the company said it entered into a conditional deal to sell its Napier Brown Sugar Ltd business for GBP34 million plus working capital.
Real Good Food said the sale of the business, to French ingredients company Teros Group, will move it into a net cash position and will provide the company with the resources to focus on its remaining business, with an emphasis on the cake decoration, food ingredients and premium bakery markets.
The company will hold a meeting on May 14 for shareholders to vote on the sale.
"I am proud of what we have achieved in building the Napier Brown business and expanding its customer base and developing its supply chain. However, the changes taking place within the European sugar market mean that the future of this business is best served by it becoming part of an international production group," said Real Good Food Executive Chairman Pieter Totté.
"We believe Tereos is the best choice for both customers and employees. This transaction will allow us to focus all our resources on the continued growth of our remaining businesses," Totté added.
Shares in Real Good Food were up 30% on the news to 41.50 pence, the best performer in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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