Proposed Disposal of Pinneys of Scotland

Pinneys of Scotland is a leading producer of fresh and smoked salmon products, together with a range of other fish based ready meals. Based in Annan in Scotland, Pinneys employs around 600 people and has been loss making for the last four years.

06/03/09 Uniq, the European convenience foods group, has reached an agreement for the sale of its UK chilled fish business, Pinneys of Scotland, to The Seafood Company Ltd (part of the Foodvest group) for an initial consideration (subject to a working capital adjustment) of £1.0m, payable in cash on completion.

Completion of the sale is conditional upon the conclusion of a staff consultation exercise. Uniq will now enter a period of consultation with its employees, which it is anticipated will be completed later this month.

The sale is in line with Uniq’s strategy to focus on those convenience food businesses with the most potential for significant profit improvement and shareholder value creation.  The net proceeds from the sale, after costs, will be used to reduce bank borrowings.  

Pinneys of Scotland is a leading producer of fresh and smoked salmon products, together with a range of other fish based ready meals.  Based in Annan in Scotland, Pinneys employs around 600 people and has been loss making for the last four years.  The business being sold made an operating loss of £1.1m in the year to 31 December 2007 and at that date had gross assets of £19.6m and net assets of £11.0m.  The challenging market place during 2008 has further exacerbated the loss making position of the business.

Commenting on the sale, Geoff Eaton, Chief Executive of Uniq, said:  “We have been working hard over recent years to turn this business around, but have been severely hampered by the significant deterioration in the market.  Given the other priorities within Uniq for investment, the Board has concluded that Pinneys of Scotland can no longer be viewed as part of the long term strategic direction of the Group.  Finding a buyer is the best outcome for all parties.”