UK snack food firm sells loss-making subsidiary
UK snack food and confectionery firm Zetar has sold a loss-making snacks business to the unit’s chief executive in a deal worth almost £2.7 million.
The Baked Snacks Company Ltd (BSC) has gone to Mobeen Mehdi, following a management buy-out by his team. Mehdi has paid £590,000 up front, with the balance due over the next three years.
Zetar says the sale removes the company’s only loss making subsidiary, enhancing its earnings and allowing management to focus solely on continuing to grow the profitable Confectionery and Natural & Premium Snacks divisions. The disposal proceeds will be used by Zetar to reduce its borrowings.
BSC makes a range of healthier low fat crisps and biscuits. Last year it had sales sales of approximately £2 million and an adjusted operating loss of £0.9 million.
