Davis appointment wrecks Colman deal
Sunday 23 April 1995
The businesses now look like going to Bass, the brewing and hotels group, for around £300m.
Mr Davis was heading a management buy-in team, backed by Schroder Ventures and Electra, the venture capitalists, which was close to agreeing the deal when he decided to take up the Prudential appointment. "We got to the point where we were just hours away from doing the deal in principle when Peter Davis said he wished to pursue the Prudential offer," said one source.
Following his decision, the Schroder Venture financiers were encouraged to meet Richard Holroyd, who is the managing director of Colman in Norwich.
This was with a view to backing the existing management in a management buyout rather than bringing in Mr Davis as part of a buy-in.
A team flew to Switzerland, where Mr Holroyd was holidaying, and came back with a different view of the businesses' profitability than that given to it previously by Reckitt & Colman's advisers, Goldman Sachs.
Mr Holroyd said the 1994 results had been unusually good because of an exceptionally warm summer, which had inflated demand for Robinson's drinks.
Mr Holroyd also said that the Goldman Sachs forecasts for the soft drinks businesses were based on the group's manufacturing capacity being run to capacity, which he said was unrealistic.
As a result of these meetings the Schroder Ventures team reduced its price by around 20 per cent, and at this stage the Goldman Sachs director Federico Aliboni said he would talk to other interested bidders. If Reckitt & Colman does decide to sell the businesses to a trade buyer such as Bass, this will represent a distinct change in strategy.
Reckitt & Colman had earlier preferred a sale to a financial buyer, partly because it believed that this course of action would result in fewer redundancies.
A spokesman for Reckitt & Colman declined to comment this weekend on the discussions with interested bidders, which are continuing.
- 1 East 17 bandmember Brian Harvey in 'very desperate situation’
- 2 Vladimir Putin says Russia will fight for the right of Palestinians to their own state
- 3 WrestleMania 31 results: Seth Rollins stuns WWE as he cashes in Money in the Bank contract to claim title from Brock Lesnar
- 4 Ohio Democrat Teresa Fedor speaks out during abortion debate to reveal she has been raped – and is interrupted by laughter from Republicans
- 5 Germanwings plane crash: I have depression. That doesn't make me a psychopath
East 17 bandmember Brian Harvey in 'very desperate situation’
Vladimir Putin says Russia will fight for the right of Palestinians to their own state
Ohio Democrat Teresa Fedor speaks out during abortion debate to reveal she has been raped – and is interrupted by laughter from Republicans
Germanwings plane crash: Investigators may have already found remains of suspected killer co-pilot Andreas Lubitz
Children take eight Isis captives to be beheaded in latest propaganda video
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
The West has it totally wrong on Lee Kuan Yew
iJobs Money & Business
£20000 - £35000 per annum: Recruitment Genius: This multi-award winning foreig...
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...