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Raisio to sell its Southall industrial property
Raisio plc, Stock Exchange Release, 7 April 2017
RAISIO TO SELL ITS SOUTHALL INDUSTRIAL PROPERTY
On 7 April 2017, the Raisio Group has signed an agreement to divest its Southall industrial property near London to Galliard Homes Ltd. Galliard Homes will pay 10 per cent of the purchase price as an advance payment and the remaining 90 per cent when the property is transferred to its ownership by the end of June 2017 latest. The buyer pays the purchase price in GBP.
Once the industrial property has been transferred to the new owner, Raisio will write down intangible rights, such as goodwill, of some EUR 29 million recorded on the consolidated balance sheet for previous UK acquisitions. This corresponds to the capital gain derived from the sale of the industrial property before taxes. For this reason, the deal has no effect Raisio’s EBIT. Capital gain resulting from the deal will be taxed in the UK at 19 per cent tax rate.
Southall is one of the most important urban development areas in London. The size of the land area Raisio is now selling is 3.3 hectares and there is a large industrial plant built in 1936 on the land. The plant came into Raisio’s possession through the acquisition completed at the beginning of 2011. Raisio’s cereal production at the Southall plant ended in the spring 2016.
Over the past 25 years, Galliard Homes Ltd, a residential property developer, has acquired real estates to renew and restore for residential use in interesting new areas across London. Further information: http://www.galliardhomes.com
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Raisio plc is an international specialist in plant-based nutrition. Raisio’s operations are divided into two divisions: Brands and Raisioagro. The Group’s key market areas are Finland, Great Britain, the Czech Republic, Russia and Poland. Markets for cholesterol lowering Benecol products are global. Raisio plc’s shares are listed on Nasdaq Helsinki Ltd. In 2016, the Group's net sales totalled EUR 436 million and comparable EBIT was EUR 50.7 million. The Group employs some 1,400 people. Raisio’s best-known brands are Benecol, Benemilk, Elovena, Fox’s and Poppets. Benemilk feeds for milk production and Benecol for cholesterol lowering are Raisio’s top innovations. For more information on Raisio go to www.raisio.com/en