GNC Greencore Group Plc

RNS Number:2790X
Greencore Group PLC
02 April 2004

GREENCORE GROUP PLC


CONTACT MR. P.T. KENNEDY     TELEPHONE:  +353 1  605 1003
                             FAX:  +353 1 605 1103


Greencore disposes of Rathbones for a total considerationof Euro30m

Greencore Group plc ("Greencore") announces that it has today sold its UK bread
activities, which trade as Rathbones Bakeries Limited ("Rathbones"), to Finedon
Mill Limited for a total consideration of Euro30m.

Rathbones is a privatelabel bakery supplier operating eight bakeries in England
and Wales.

Under the terms of the deal Greencore will receive total consideration of Euro30m,
which will be satisfied as follows:

*    Euro18.5m paid at completion; and



*    Deferred consideration payable of Euro11.5m. Euro4.6m of the deferred
     consideration is payable in monthly instalments of Euro150,000 commencing in
     September 2004 with the balance of Euro6.9m due on 1 April 2009. The latter 
     element of the deferred consideration bears a commercial rate of interest.

The transaction is the culmination of Greencore's objective to realise the
capital employed from its UK bread business. Previously Greencore generated net
proceeds of Euro17m from the sale of the Milton Keynes bakery in May 2002 and the
non-reinvestment of the majority of the insurance proceeds following the fire at
the Trafford Park bakery in September 2003. In total, therefore, Greencore will
have realised Euro47m from the exit from its UK bread business, which lost Euro0.4m
before taxation and goodwill amortisation in the year ended 26 September 2003 on
turnover of Euro102.8m.

The value of the net assets disposed of, excluding goodwill, was approximately
Euro27m. In addition, goodwill of Euro12.8m relating to Rathbones is included on the
consolidated balance sheet of Greencore. A further Euro36.4m of goodwill was
written off to reserves on consolidation at the date of acquisition and, while
it will be included in the calculation of the loss on disposal to be shown in
the consolidated results of Greencore for the year ended 25 September 2004, the
Group's consolidated net asset position will not be impacted by this.

Greencore will use the proceeds from this transaction to reduce its indebtedness
and to support further investment in its growing convenience food categories.

Greencore's Chief Executive, David Dilger, said "The disposal of Rathbones
completes the exit from the bread market in the UK, a positive development for
the Group both commercially and financially.   This further sharpens the focus
of resources on our convenience food categories which have strong growth
prospects and leading market positions"


Patrick Kennedy
Chief Financial Officer
Greencore Group plc
St Stephen's Green House
Earlsfort Terrace
Dublin 2.


Telephone 353 (0) 1 6051003
Fax       353 (0) 1 6051103

2 April 2004.


   An exchange rate of Euro1 = Stg#0.6670 has been used for the purposes of this
      announcement.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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