Pinguin p-p-p-picks up Salvesen’s frozen veg arm

Christian Salvesen has taken another step towards concentrating solely on its logistics and transport divisions by selling its frozen vegetable business. The sale of Christian Salvesen Foods to King's-Lynn-based Pinguin Foods, for £17.2m, does not immediately affect the storage and distribution of the products this will continue to be carried out on behalf of the new owners from sites at Grimsby, Hull and Lowestoft for at least the next 16 months.

However the deal does mean stock, plant, machinery, contracts and 263 people at its Bourne, Thoresby and Easton sites in Lincolnshire will transfer over to Pinguin Foods by mid-September. In addition, Christian Salvesen will lease the land and buildings rent-free to Pinguin for the next six years.

Speaking exclusively to Commercial Motor, Salvesen chief executive Stewart Oades says it makes sense to dispense of the venture as "it is not strategically central to our business going forward." Commenting on whether its strategy is now complete, Oades adds: "A strategy is never complete, but refined every year. The business is concentrated on the things we want it to do. We've had a good year of growth we hope to see further growth in the next 12 months."

Oades will not be drawn on whether he is in the market for acquisitions, but adds: "My principle focus is to continue our successful growth in France and Spain. Both those markets have been growing 8-10% per year and we would expect to see them continue to do so. Our clear strategy for the UK is to return it to an acceptable level of business."