Uniq says adieu to its French operation

Published on Friday 26 June 2009 21:48

MARKS & Spencer food supplier Uniq announced the sale of its French business yesterday, as it took a major step in refocusing on its loss-making UK operation.

The proposed sale of Marie, which makes chilled and frozen convenience foods and has six sites in France, will raise 73 million (62m).

Uniq, which is also selling operations in northern Europe, will use 25m to pay down debt, with the remainder of the proceeds available for investment and reducing the company's UK pension deficit.

The group is offloading its European sites so it can focus on the turnaround of its domestic business, which recently posted an operating loss of 3.3m after a "disappointing" year.

The UK arm actually returned to profit in 2007, but this was reversed by economic conditions and operational problems at its desserts plant at Evercreech, Somerset.

Uniq also has a sandwich and wraps factory at Northampton and a further desserts operation at Minsterley, Shropshire.

Yesterday's sales agreement with LDC, a leading French poultry and delicatessen group, is subject to competition clearance in France and the approval of Uniq shareholders.