The Nichols group has sold its last food manufacturing interest to joint group md Gary Unsworth in a £12.7m deal, which will leave the parent company largely free of debt. The purchase included the group's contract packaging firm Stockpack.
Unsworth promised to reveal a new strategy for Nichols Foods -- the company he co-founded in 1981 before selling it to Nichols in 1986 -- by next spring, but meanwhile he is expected to complete the purchase this month of a £3.5m freehold property in Haydock.
The Nichols group said that Nichols Foods, which made a pre-tax profit of £1.45m on a £48.8m turnover in 2003, and the property had a book value of £15.8m. There was a non-cash goodwill write-off of £6.1m. Nichols Foods had previously paid the group a dividend of £1.1m. Unsworth said that both sides were happy with the deal.
Nichols Foods makes hot and cold beverages for catering, vending and retail customers. The own-label and branded products include soups, whiteners, sauce sachets, jams and fruit pie fillings.
Unsworth and his brother, Ian, have joined the company's board. Mark Lewis will join at the end of January from Unilever as sales director.