Associated British Foods, the international food, ingredients and retail group, today announced the sale of its British third party flour milling business to ADM Milling Ltd, a wholly owned subsidiary of Archer Daniels Midland, including its flour mills at Edinburgh, Castleford, Knottingley, Liverpool, Corby and Tewkesbury.
Completion of the contract will be subject to regulatory approval in the UK.
According to ABF, the parts of the business to be sold to ADM generated sales outside the group in the year to 14 September 2002 of £96 million (€150m) and had net tangible assets of £41 million at 14 September 2002.
ABF 's remaining UK mills at Tilbury, Manchester and Belfast will now concentrate on providing the supply of flour to its Allied Bakeries business, the seller of Kingsmill and other bread brands. It will also retain the existing milling operations of Westmill Foods.
Earlier this week, ABF also announced the sale of its glass packaging business, Allied Glass Containers, as reported on Monday .
Commenting on the announcement, ABF chief executive Peter Jackson said: "The disposal of the British third party flour milling business leaves ABF with a very effective, integrated flour milling operation, streamlining flour supplies to Allied Bakeries in a very competitive market."