FDBusiness.com

Provexis seeks to demerge Science in Sport and Fruitflow

 Breaking News
  • Innovation Driving Dairy Crest Dairy Crest Group has reported a 2% rise in revenue to £224.9 million and a 13% increase in adjusted profit before tax to £22.7 million for the first six months ended 30 September 2018 as its two largest brands, Cathedral City and Clover, delivered strong growth of 7% and 9% respectively and demand for the [...]...
  • Diageo Sells Portfolio of Brands to Sazerac Diageo has agreed the sale of nineteen brands to Sazerac, the US-based alcoholic beverages company, for an aggregate consideration of $550 million. The net proceeds of approximately £340 million, after tax and transaction costs, will be returned to shareholders through a share repurchase following completion, which will be incremental to the previously announced programme of [...]...
  • GEA Builds Dairygold’s Next Milk Powder Plant in Ireland In July of this year, GEA received the order for Dairygold’s next milk powder plant in Ireland at Mallow, County Cork. The scope includes one new spray drier (GEA’s Multi-Stage Dryer – MSD® size 1000), one new evaporator to match (type 3 MVR), one new 12MT/hr x 25kg GEA powder packing LI Line (Limited Intervention) [...]...
  • Strongbow Blossom Rosé Sparkling Apple Cider Launched With Identity and Packaging Design by Denomination Leading drinks design agency Denomination has designed a new product, Strongbow Blossom Rosé Sparkling Apple Cider, for Carlton & United Breweries (CUB, part of the AB InBev family), aiming to bring growth and inject excitement back into the cider category. Denomination developed an elegant and Insta-worthy design to appeal to the repertoire of drinkers who usually enjoy white [...]...
  • Parmalat Acquires Canadian Natural Cheese Division of Kraft Heinz For €1.1 Billion Parmalat, the Italian dairy group, is acquiring Kraft Heinz Canada’s division that produces and markets Kraft’s natural cheese products, mainly under the Cracker Barrel, P’tit Quebec and aMOOza brands, for C$1.62 billion (€1.1 billion). Net revenue generated by the business being acquired amounted to about C$560 million (€374 million) in 2017. The acquired business includes [...]...

Provexis seeks to demerge Science in Sport and Fruitflow

July 01
09:50 2013

UK firm Provexis has filed to demerge the Science in Sport (SiS) consumer sports brand it purchased for €10m in June 2011 from its Fruitflow tomato-based ingredients business, as it believes the separation will increase the market value and perception of SiS.

The move, if approved at a General Meeting in two weeks’ time, will see Provexis devote the bulk of resources to SiS and reduce its net assets by an estimated £7.1m (€8.28m).

“…the Board does not believe that the market fully appreciates the value of the Science in Sport Business while it is combined with the Fruitflow Business,” Provexis said in its demerger filing.

“Businesses with similar characteristics and revenue growth to the Science in Sport Business historically command a multiple of sales valuation, something which has not been recognised in the valuation of the Provexis Group since the acquisition of Science in Sport.”

The statement went on: “Furthermore it is the opinion of the Board that the two divisions are less likely to maximise their potential performance if they continue to be operated as part of one group.”

“The Board concluded unanimously that a demerger, in which Provexis Shareholders remain shareholders in both businesses, would be the best way of maximising shareholder value.”

Fruitflow

Provexis said it would retain control of the Fruitflow tomato extract business that has an EU-approved blood circulation improving health claim, and with which it has a partnership with Dutch ingredients giant, Royal DSM.

But it said it would reduce its annual running costs in that business to (£250,000) €290,000 per year, with DSM taking over the bulk of the commercialisation work and Provexis focusing on,“protecting the intellectual property of Fruitflow and assisting DSM with scientific work”.

“The Board believe that these obligations can be met with a very small team comprising two part-time executives, together with two non-executive directors to oversee strategy and governance matters,” Provexis said in a statement.

“All other operational staff currently employed by the Provexis Group will become employees of the Science in Sport Group following completion of the Demerger.”

Provexis recorded a pre-tax loss of £4.6m (€5.37m) for the financial period ended march 2013 on £3.5m (€4.08m) revenue , compared to losses of £4.3m (€5m) in 2012 on revenue of £5.6m (€6.53m).

About Author

colin

colin

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • November 21, 2018expoSE European Asparagus and Strawberry Fair
  • November 27, 2018Health Ingredients Europe
  • November 28, 2018FOOD & LIFE
  • December 3, 2018P&P 2018
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements