McBride aims for pounds 220m

WILLIAM GLEESON

Mike Handley, managing director of McBride, which makes toiletries and detergents for supermarkets' own labels, will make a combined paper and cash profit worth about pounds 4.5m when the company is floated on the stock market in early July.

The company expects to raise pounds 220m in new money and the listing is expected to value the company at pounds 350m. The group will be raising a further pounds 42m to repay debts. SG Warburg will act as sponsor and lead manager of the share issue.

Mr Handley bought into the company for less than pounds 200,000 when McBride was sold off by BP in May 1993. Another 115 managers have smaller stakes.

Mr Handley will receive pounds 1m from the sale of 25 per cent of his current holding in the company and after flotation he will have 1 per cent of the company - worth pounds 3.5m

Mr Handley said: "Flotation will provide the capital structure from which to achieve the continued growth of McBride."

The company said in its pathfinder prospectus yesterday that operating profit for the year ended 30 June 1995 would be up 10.3 per cent at pounds 38.5m. Turnover in the year to the end of last June was pounds 409m and the company says it will be higher this year.

McBride plans to sell 25 per cent of the shares to the public and expects to give a price range on 21 June. The issue price will be announced on 6 July and dealings will begin on 7 July.

The group's biggest customers for its range - which includes household detergent, shampoo, toothpaste and mouthwash - are the main grocery retailers such as Tesco, Sainsbury and Safeway in the UK and Leclerc and Promodes in France. The retailers sell McBride's products under own labels or as minor brands.