05 March 1998
Dalgety negotiates agricultural supplies MBO
DALGETY is in negotiations to sell its agricultural supplies division to a
management buy-out, leaving the former foods and agribusiness conglomerate with only its pig breeding business.
Since taking over the reins in September Ken Hanna, the groups chief executive, has managed to offload three of the companies main businesses including petfoods, food ingredients and distribution for a total of £1.04bn. The company hopes to return £650m to shareholders.
It is understood Paul Kirk, chief executive of the agricultural supplies
division and Dalgety main board director, has been granted an exclusive
negotiating period while he puts a bid together to sell the division.
Analysts believe the agriculture division could fetch £50m plus working capital.
Dalgety has suffered a sharp fall in profits over the past year due to the BSE crisis and the drop in incomes of farmers who are the companys main customers. It made a profit of £22.8m in 1995-96 but a loss in the following year of £200,000 because of the downturn in agriculture.
- Financial Times 05/03/98 page 27