Dalgety snaps up Felix
Saturday 04 February 1995
The acquisition brings together Dalgety's Winalot dogfood and Arthur's catfood brands with Quaker's Fido and Felix, which is the fastest-growing brand of catfood in Europe. The deal will be subject to European Commission approval, but if successful will give Dalgety 21 per cent of Europe's £4.9bn petfood market, second only to Mars, whose Pedigree Chum and Whiskas brands give it a share of more than 40 per cent.
Dalgety is paying cash for the deal, which will be funded by a £186m rights issue and the sale of Golden Wonder snacks business and the Homepride flour and sauces subsidiary. Dalgety says it hopes to raise more than £300m from the disposals.
Commenting on the deal, Dalgety's chief executive, Richard Clothier, said: "We needed a breakthrough in petfoods to achieve a powerful position in the market. Up to now, Mars has dominated but now Spillers, together with Quaker will be a strong number two."
He said there was significant scope for and rationalisation in administrative centres, manufacturing operations and marketing. There are likely to be several hundred job losses, though Mr Clothier said the majority would be outside the UK.
The deal was welcomed in the City as a sensible strategic move and the shares rose 23p to 419p. Tim Potter at Smith New Court said: "If Dalgety wanted to be big in petfood it had to go for Quaker once it was put up for sale. In the end it was a two-horserace between them and Nestle."
Dalgety's interim results showed that for the six months to 31 December profits rose by 8 per cent to £61m on sales of £2.55bn. The interim dividend was increased by 6 per cent to 8.5p a share.
Outlook, page 17
Diving in at the deep end is no excuse for shirking the style stakes
- 2 Why I'm on the brink of burning my Israeli passport
- 4 War is war: Why I stand with Israel
- 5 Blackest is the new black: Scientists have developed a material so dark that you can't see it...
Ian Thorpe gay: Olympic swimmer comes out in Parkinson interview
Stephen Fry ‘criticises Operation Yewtree in dinner party rant’ calling for tougher laws to deter false sex abuse allegations
Israel-Gaza conflict: ‘Sderot cinema’ image shows Israelis with popcorn and chairs 'cheering as missiles strike Palestinian targets'
Israel-Gaza conflict: Israeli air strike destroys home for the disabled killing two women residents
Israel-Gaza conflict: Israeli PM says conflict may 'continue for a long time' as hundreds of Palestinians flee their homes
Sustained immigration has not harmed Britons' employment, say government advisers
War is war: Why I stand with Israel
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Australia facing international condemnation after turning around Sri Lankans at sea
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
iJobs Money & Business
£70000 per annum: Harrington Starr: Information Security Manager (ISO 27001, A...
£75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...
£60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...
£35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...