27 April 1998
Dalgety feeds poised for MBO?
DALGETY is believed to be close to selling its troubled cattle-feed business to management for about £60 million. The group is currently in the process of breaking itself up to give shareholders £675m in cash.
A deal on the cattle-feeds business is expected soon. The management team is headed by Paul Kirk, the executive director responsible for Dalgety Agriculture, who is set to receive a £74,000 business for selling the Martin-Brower, the groups US food distribution business.
The management is advised by KPMG Corporate Finance and is funded by NatWest Bank. The Dalgety holding company will be left with a pig breeding company and will change its name to PIC International.
Dalgety Agriculture includes seeds, fertilisers and pellet feeds for pigs but the cattle-feed side of the business has slashed its profitability in recent years because of the BSE crisis and falling farmers incomes.
Dalgety has already sold its Spillers Petfoods arm for £715m and its flour and food ingredients businesses for £360m.
- The Daily Telegraph 27/04/98 page 27