16th Feb 2005 11:20
Geest PLC16 February 2005 GEEST SIGNS HEADS OF AGREEMENT TO ACQUIRE LEAFY SALADS BUSINESS 16 February 2005 Geest PLC, the leading fresh prepared foods and produce company, announced todaythat it has signed a non-binding heads of agreement to acquire the trade andmoveable assets of the prepared leafy salads manufacturing facility of G'sMarketing Ltd (GML). GML is a privately owned company and is the UK's largestsupplier of whole head lettuce and the fifth* largest supplier of prepared leafysalads to the major UK supermarkets. The business associated with the assets being acquired had a turnover of £18.6million for the financial year ending April 2004 and was profitable. GML willcontinue to grow and market whole head lettuce and will supply Geest with wholehead lettuce for its prepared leafy salads business. The value of the assets to be acquired is £2.2 million. Completion is expectedat the end of March 2005 pending the outcome of due diligence which beginsimmediately. The business is expected to benefit from being part of a largerfresh prepared foods group and the acquisition is expected to be earningsenhancing in its first year of ownership. Geest's CEO, Gareth Voyle, said:"Today's marketplace requires us to become more efficient and we have madesignificant strides in the last year to achieve this. This complementaryacquisition will help us to improve further our manufacturing efficiency as wellas increase our exposure to strong consumer demand for fresh, healthy andconvenient food." * Geest estimates ENDS Enquiries:Mark Pullen, Finance Director Paula CooperGeest PLC 01775 761111 Tim SprattFinancial Dynamics 020 7831 3113 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
GET.L