Proposed Disposal of German and Polish Business Units for €28.5 million

Uniq announces that it has signed an agreement for the disposal of the German and Polish Business Units with IFR Capital plc for €28.5 million.

Uniq, the convenience foods group, today announces that it has signed an agreement for the disposal of the German and Polish Business Units with AIM-quoted IFR Capital plc (“IFR”) for a total cash consideration of €28.5 million (£25.7 million), payable on completion. In addition, the buyer will assume net pension liabilities valued at €12.3 million (£11.8 million) at 31 December 2008.

This disposal remains subject to the approval of Uniq shareholders and competition authority clearances in Austria, Germany and Poland. 

USE OF PROCEEDS

The net proceeds (after costs of approximately £3 million) from the sale will be used to eliminate Group net debt (pro forma £2.5 million at 25 September 2009 following the sale of Marie), with the balance being applied to shaping the long term future of Uniq whilst having regard to the significant UK pension deficit.

Commenting on the proposed disposal, Geoff Eaton, Chief Executive of Uniq, said:

“The successful disposal of our German and Polish Business Units for a consideration of €28.5 million will create value for Uniq and position the businesses with a strong local owner with good industrial synergy. We are making good progress on the sale of our Dutch Business Unit, which forms the rest of our Northern Europe Division” 

Uniq will dispatch a circular to shareholders giving details of the transaction and notice of a general meeting.

DESCRIPTION OF THE GERMAN AND POLISH BUSINESS UNITS

Uniq’s German/Polish businesses reported an operating loss of €2.0 million (₤1.6 million) for the year to 31 December 2008 and at that date had gross assets of €111.6 million (₤106.9 million) and net assets before impairment and excluding the net pension fund liabilities of €12.3 million (£11.8 million), of €59.3 million (₤56.8 million). After a Group impairment charge of €24.9 million (£23.8 million) and deducting the net pension liabilities, the net assets were €22.1 million (£21.2 million) at 31 December 2008. The German/Polish businesses comprise:

• Nadler, one of the leading suppliers of chilled prepared salads, fish specialties and other delicatessen products in Germany. Based in Bottrop, in the Ruhr industrial district of Germany, Nadler employs around 400 people.
• PHF, including the regional salads brands Pfennigs and Hopf and the foodservice operations in Germany. PHF operates production facilities at Sarstedt and Floh and employs around 200 people.  
• Lisner, the market leader in chilled herring and bread spreads and holds the number two position in chilled salads in Poland. The business is based in Poznan, Poland’s fifth largest City, and employs around 1,000 people.

Note: ₤/€ exchange rate of 1.11 as of 10 November 2009 has been used for translating the values relating to this transaction. Historic information has been translated at the appropriate prevailing rates.

For further information:

 Uniq plc:

Geoff Eaton

Martin Beer

Telephone No. +44 (0) 175 327 6011

Investec Investment Banking:

Clifford Halvorsen

Patrick Robb

Telephone No. +44 (0) 207 597 5970

Hogarth Partnership Ltd:

Julian Walker

Telephone No. +44 (0) 207 645 3988