UK-based Carr’s Group sells flour milling operations to Whitworths

UK-based agriculture and food company Carr's has sold its Flour Mills business to Whitworths Holdings, a flour milling company.

Carr’s sold its flour unit for a gross consideration of $48m and net consideration of $33m, after adjustments for working capital and net debt in the business at completion.

Carr's chief executive Tim Davies said: “At a time of increasing competition and volatility in the flour market, consolidation is essential and inevitable.

“This acquisition by Whitworths presents a great opportunity for the food division to continue building on the strong foundations laid over many years. On behalf of the Carr's Board, I would like to thank everyone who has contributed to the division's success.

"We will continue to focus on our strategy of delivering growth in our UK agriculture business, the development of our international feed supplement businesses and building our specialist engineering division in niche markets across the globe.

“Carr's continues to benefit from both operational and geographic diversity and a strong balance sheet.”

The company said that the sale of Flour Mills would bolster its plans to achieve growth and development.

Whitworths Holdings chairman Martin George said: “Carr's Flour Mills shares a similar history to Whitworths in that it is a long standing business which has received material investment in recent years.

“The business is a great fit geographically and will give us access to the South East, North of England and Scottish markets that would otherwise not be available and means we have national reach.”

Carr’s also added that the sale was in line with the group's strategic goal to become a global leader in agriculture and engineering business.