Nichols md bids for own foods firm

Soft drinks, food and foodservice supplier the Nichols group is to sell off its food manufacturing interest Nichols Foods -- probably to former group md and joint founder Gary Unsworth.

Nichols Foods supplies the retail and catering markets with products such as milk powder, milkshakes, desserts, cereal snacks, jams and pie fillings.

The sale, for about £10m, would leave the Nichols group with its soft drinks brands, including Vimto and Sunkist, and the Balmoral hot beverage business. A deal is likely to be completed by the end of September.

Group chairman John Nichols said the food firm was a poor fit and its financial adviser Roths-child advised selling. Unsworth's conditional bid was the best offer.

Although Nichols Foods, which accounts for half of group turnover, is continuing to expand, profit is growing more slowly, said Nichols. Based at Haydock on Merseyside, Nichols Foods employs 300 people and has a turnover of £50m-plus.

Trading will continue between Nichols Foods and the rest of the group, said Nichols.

Unsworth's successor is likely to be announced early next year.