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 Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
- 2 Rarest Beanie Baby of them all could be sold for £62,500 on eBay
- 3 Driving while dehydrated can be just as dangerous as drink driving, study suggests
- 4 Ben Affleck asked TV chiefs to hide slave-owning ancestry, new hacked Sony emails published by Wikileaks claim
- 5 Farmer told to tear down mock-Tudor castle after hiding construction behind hay bales
Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
Rarest Beanie Baby of them all could be sold for £62,500 on eBay
Professional big game hunter Ian Gibson crushed to death by elephant during hunt
Ben Affleck asked TV chiefs to hide slave-owning ancestry, new hacked Sony emails published by Wikileaks claim
Farmer told to tear down mock-Tudor castle after hiding construction behind hay bales
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...