Northern Foods has sold NFT Distribution, the Alfreton-based transport business with 1,200 staff, to a management buy-out backed by Phoenix Equity Partners for £51.2m. NFT's existing managing director, David Frankish, will head the new company along with Charles Stephens, who will be the business services director. The disposal is the first of several to be made under a wider restructuring programme announced by Northern Foods on 31st May 2006. The company plans to sell businesses amounting to 40 per cent of its revenues in order to narrow its focus to a few core areas. The payment will comprise of £44.5m in cash, and a loan note of £6.7m to be paid within a year of completion. Northern Foods will use the funds to reduce debt, and will pay £10m into its pension scheme.
