Associated British Foods, the UK-based international food, ingredients and retail group, has announced that it has sold its glass packaging business, Allied Glass Containers, to its management who are supported by Close Brothers Private Equity.
In the financial year ended 14 September 2002, Allied Glass Containers had sales of £58 million (91.6m) and had net tangible assets of £42 million.
Commenting on the announcement, ABF chief executive, Peter Jackson, said: This disposal reflects our continuing commitment to focus resources on businesses where we have strong and growing market positions.
In ABFs annual general meeting, held earlier this month, chairman Harry Bailey had made several references to future streamlining and the need to reduce the company cost base:
Although the strength of sterling has been a significant adverse factor that is something which is outside the industrys control. What is within its control, however, is the necessity to reduce the cost base and improve the efficiency of an overly complex and expensive supply chain.
Earlier this year the group bought up the Ovomaltine brand, and growth through further acquisitions is expected to take place during the course of next year, although Bailey did add that all purchases would be highly targeted.
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