Disposal of Dairy Division
29 May 2024
Roebuck Food Group plc (AIM: RFG), is pleased to announce the sale of its dairy business ("the Disposal") to an unrelated partnership engaged in the Irish dairy milking industry ("the Purchaser") for a consideration of €1.45 million. Following the settlement of indebtedness and the operation of a completion accounts adjustment mechanism in the Share Purchase Agreement, this will result in a consideration receivable by the Company of approximately €1.3 million.
In its annual report for 2023, the Company noted its focus on delivering shareholder value through efficient capital allocation. The Company began discussions with the Purchasers, which discussions have culminated in the Disposal.
Roebuck's dairy division, which is the subject of the Disposal, is comprised within its wholly-owned subsidiary Cantwellscourt Farm Limited, incorporated in Ireland with registered number 580993, registered office at 6th Floor South Bank House, Barrow Street, Dublin D04 TR29 and principal place of business at Kilkenny, Co. Kilkenny, Ireland, where it operates a dairy farm of 183 hectares held on a number of occupational leases, with circa 470 milking cows.
The Disposal results in the Group's business changing from a combination of the milling and importation of food and ingredients, product sourcing and dairy farming to the milling and importation of food and ingredients and product sourcing only. For the year ended 31 December 2023 the dairy division generated revenue of €1.6 million, loss after tax of €0.5 million, and had net assets of €1.44 million.
The Disposal realises cash proceeds for potential future acquisitions or investments, and for the general corporate purposes of the Company and its subsidiaries ("the continuing Group").
In the Share Purchase Agreement, the Company has given various warranties and indemnities to the Purchasers, concerning (among other things) the share capital, business, and assets of Cantwellscourt Farm Limited.
The Directors consider that the current trading of the continuing Group is in line with expectations and remain confident of the continuing Group's prospects for the current financial year.
The Directors consider the terms of the Disposal to be fair and reasonable and in the best interests of the Company and its Shareholders as a whole.
The Directors of the Company accept responsibility for the contents of this announcement.
Enquiries:
Roebuck
Aidan Hughes, Deputy Chairman
Telephone: + 44 1293 862 498
Davy
Anthony Farrell
Telephone: + 353 1 679 6363