Greencore is to sell its loss-making bottled water business to Highland Spring in a deal worth up to £17.5 million (€19.6 million).
The division, Greencore Water, supplies customer branded water in the UK. It operates from two facilities, one located at Campsie Springs in west Scotland, and the other at Blaen Twyni in Wales.
The division was hit by controversy in 2008 when the company reported costs were deliberately concealed.
The company generated a loss before taxation of £3.8 million (€4.5 million) in the year ended September 25th, 2008, and had net assets of £15.9 million (€20.1 million).
Under the deal, Greencore will get an initial payment of £10 million (€11.2 million) on completion. A further payment of £3 million (€3.4 million) is deferred until the second anniversary of completion, while the remaining £4.5 million (€5 million) will depend on the future performance of the business.
The deal is expected to be completed by April next year.
