Collecchio, 28 November 2008 - Parmalat hereby gives notice that on 28 November 2008, a preliminary contract was signed with Newlat S.p.A. in respect of the disposal of the Parmalat dairy business unit located at Lodi.
The business unit produces and sells diary products (cheese) under the “Ala”, “Polenghi” and “Optimus” brands. The unit recorded net sales of approximately €36 million in 2007, and currently employs 93 staff. Along with the business unit, a portion of real estate consisting of land and two properties used for the business will also be transferred. Commercial agreements for supply and distribution will also be executed between Parmalat and Newlat S.p.A. to ensure coverage of the region presently addressed by the existing business through the Parmalat distribution network.
Newlat S.p.A. (TMT Finance Group), based at Reggio Emilia, operates under the “Buitoni (pasta and bread substitutes)” licenced brand and “Polenghi”, “Matese”, “Giglio”, “Torre in Pietra” and “Fior di Salento” owned brands. For the full year 2008 Newlat S.p.A. expects to report turnover of around €200m, with a headcount of some 800 staff.
The buyer will undertake to maintain present levels of employment with a view to promoting the future growth of the business unit.
The business unit will be sold for a consideration of €150,000.00, which is equal to the value of the assets being transferred less the liabilities. The assets include an amount of €3,150,000.00 of cash which will be fully compensated by the positive balance of trade receivables and payables not being transferred with the business.
Parmalat S.p.A. will give notice in a timely manner once ownership of the business unit has been transferred and the agreement has been executed in full.