McBride has announced that it is to sell its European personal care liquids business to Royal Sanders Group in a cash deal worth £12.5 million.
The move comes as the leading European contract manufacturer issued a profit warning, and is part of its strategy (announced in February to coincide with its half-year results) to return its Personal Care & Aerosols division to break even within the space of 18 months.
The personal care liquids unit comprises two manufacturing sites in the UK and Belgium and generated revenues of £58.8 million – and an EBITA loss of £1.9 million – in the past 12 months. The transaction is expected to complete in the final quarter of the year.
“The agreement to sell our European Personal Care liquids activities follows a comprehensive review of the business and marks the final element in the transformation plan for our European PCA activities. The transaction enables the business to be developed as part of a dedicated personal care manufacturer of greater scale and positions McBride’s European operations as a focused Household business with a clear strategy to deliver sustainable profitable growth,” said Rik De Vos, McBride Group Chief Executive.