Buy-out fixed at £50m for Dalgety Agriculture
DALGETY Agriculture is to be bought by its directors for £50m, subject to shareholder approval.
The board of parent company Dalgety is recommending that the offer be accepted, and confirmation is expected by the end of May.
The new company will continue to trade under the Dalgety name. The men behind the successful management buy-out, Paul Kirk, currently Dalgety Agricultures chief executive, and Tony Taylor, feed director, will become executive chairman and managing director respectively.
Other members of the MBO team include directors Richard Green, Kevan Compson, Andrew Barnard and Peter Hunt.
The division has had a rough time of late. BSE and the general slump in farm incomes drove sales down 27% in 1996/97, turning the previous years profit of £23m into a loss of £200,000. In the six months to Dec 31, profit returned to £1m.
Mr Taylor said the MBO had been well received. "Farmers in particular see a significant independent force in the market as being of benefit to the industry. Our new, independent standing will ensure customer choice is maintained."
Mr Kirk added that the company would continue its reputation for research-based nutrition, ingredient traceability and food assurance. "We are determined to maintain that position, working with research establishments to provide solutions for livestock farmers facing financial and production pressures." *