Finland-based food company Raisio has signed an agreement to sell UK snack bar business, Halo Foods, to Dutch investor Nimbus.
Halo Foods, a manufacturer of its partners’ branded products, became part of Raisio through the Glisten acquisition in 2010.
Raisio CEO Matti Rihko said that the company will withdraw from making of snack bars marketed to consumers under its partners' brands.
Rihko said Raisio will shift its focus to the development and marketing of proprietary branded products.
Rihko said: “For Raisio, it is important to expand the range of its branded products in line with consumer needs, not to produce itself all the products in the range.”
Halo Foods’ assets include two manufacturing facilities in Newport and Swindon and the Dormen brand. It employed 300 people.
Raisio said that Halo Foods’ business and employees in the UK have been transferred to the new owner.
The company will incur a loss of €19m for divesting Halo Foods business and nearly €1m as restructuring costs related to the UK snack & cereal business.
Halo Foods earned a revenue of €18m in the first half of 2016.
In December 2015, Raisio announced streamlining its UK cereal and snack business in order to concentrate on producing more consumer-oriented product range.
The company expected the new operational structure would help in improving its competitiveness as well as aid in cost-saving efforts of the UK's cereal and snack business.
Raisio Snack & Cereal unit vice president Tomi Järvenpää said: "Remodelling of the business is necessary to ensure future success of the UK cereal & snack business. The new operating model improves Raisio's competitiveness in both local and international markets."
