ACH Achp

RNS No 3570w
ACATOS & HUTCHESON PLC
3rd June 1998

                          PROJECT FALCON

Acatos & Hutcheson plc ("the Company") has today, 2nd June 1998, entered into
agreement(s) to establish a joint venture by selling a 50% interest in its
subsidiary Leon Frenkel Limited to Princes Limited.

Leon Frenkel Limited is a packer of edible oils, principally olive and
speciality oils.  It was acquired for #8million in cash by Acatos & Hutcheson
plc on 29th September 1997 at which date net assets amounted to #9.3 million.

Princes Limited will pay #4million in cash plus half the Company's acquisition
costs, for half the net assets as acquired by the Company.

For the period ended 30th September 1997, Leon Frenkel Limited made pre-tax
profits of #3.2million (against pre-tax profits at 31st October 1996 of
#650,000).  The profit achieved at 30th September 1997 is viewed by the Company
as an exceptional profit and not reflective of earlier years or future budgeted
expectations.  The exceptional nature of the profit was occasioned by a very
favourable change in the commodity traded price of olive oil, which is purchased
in bulk, bottled and sold by Leon Frenkel Limited to the retail market.

Having considered the future development of Leon Frenkel Limited the Board of
Acatos & Hutcheson plc has concluded that its business will be better served by
entering into a Joint Venture with Princes Limited, which has extensive
marketing and distribution facilities for both branded and distributor own label
products.

The proceeds of the sale will be used in respect of the Company's ongoing
capital investment programme.

END

DISAILVTRTIVIAT

Achp (LSE:ACH)
Historical Stock Chart
From Jun 2024 to Jul 2024

Achp (LSE:ACH)
Historical Stock Chart
From Jul 2023 to Jul 2024