The condoms and rubber gloves company, which diversified into photoprocessing in the 1980s, has been trying to sell ColourCare since December. The sale was a prerequisite for an imminent rights issue and refinancing for the heavily indebted group.
ColourCare's management, under the name Nexus Photo, is acquiring the business - with the exception of 257 minilab operations in the stores of Boots Group - for a nominal sum. But it will be transferred free of debt and leasing commitments and LIG will lend Nexus pounds 6m for 18 months interes-free for the first year.
The Boots operations, which account for around 850 employees out of about 3,500 in the ColourCare arm as a whole, are the subject of separate negotiations.
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