Real Good Food’s proposed sale of its subsidiary Napier Brown Sugar has been approved.
It will be sold to Tereos, the world’s fifth-largest sugar group, for £34m plus net working capital at completion, as announced on 29 April. Approval was granted at an Extraordinary General Meeting (EGM) of the company where shareholders agreed. Completion is expected on 19 May.
Real Good Food, which also runs Renshaw, Whitworths Sugar and R&W Brown, said at the time that the sale had been brought about by a failure to find a supplier that wanted to work in a “strategic partnership”.
It added the proceeds from the sale would move it to a “net cash position” and would “both create the resources for investment and enable these resources to be focused on its remaining added-value businesses, with particular emphasis on the attractive markets of cake decoration, food ingredients and premium bakery”.
The move followed warnings that Napier Brown had found trading “difficult” and it was revealed in the company’s results to 31 March 2015 that talks were being held regarding the subsidiary’s future.