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144 
Bosses buy Geest wing
Page 15
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• Food group Geest has sold its contract distribution divison to a management-led team for £16.5 million.
Distribution divisonal director Mike Rowley, northern general manager David Brown and southern general manager Peter Ferguson, headed the buyout team, paying Geest £9 million as well as taking debts of £7.5 million.
The three directors will own 30% of the GCD, the new company formed out of Geest's distribution wing. The remaining 70% will be held by institutional investors, led by Citicorp Venture Capital.
Geest will able to subscribe for 10% of GCD's shares at a nominal price if the company is sold or floated on the stock exchange. Ferguson says: "Geest is laying its emphasis on fresh produce. It did not see distribution as a core activity but it still wanted to retain an interest in it."
GCD will continue with Geest's distribution contracts which include companies such as Sainsbury, Gateway, William Low and the Co-op, and Ferguson stresses that he aims to win more contracts this year.
Geest's contract distribution wing made pre-tax profits of 270,000 in the 11 months to 26 November and assets were valued at 26.7 million.
The new company has depots in Maidstone Kent, Bellshill in Scotland and Shildon in the North East. Geest has retained the freehold of the Maidstone and Shildon depots. The three sites employ 340 staff and have 102 vehicles.