Royal Wessanen reached an agreement with a local entrepreneur for the sale and purchase of its French business Kalisterra for an undisclosed amount. Kalisterra is a French distribution company selling food supplements to pharmacies and is part of Wessanen Europe Health Food Stores (HFS). It realised net revenue of €14 million in 2010. The deal is expected to close per 1 October 2011. A book loss of about €1 million after tax is expected on the sale, to be reported in Q2 2011.

This move is fully in line with Wessanen's strategic emphasis on creating more focus within its wholesale activities in Wessanen Europe HFS. In France, the company will focus with Distriborg on its branded grocery business (which includes the leading organic brand Bjorg), branded HFS business (with its brands Bonneterre and Evernat) and wholesale HFS via Biodistrifrais.


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Wessanen successfully renegotiates more favourable terms for its credit facility
Royal Wessanen nv has successfully renegotiated certain terms of its €100 million credit facility with the existing syndicate group of banks, being ABN Amro, ING, Rabobank and BNP Paribas. The facility was scheduled to mature in February 2012 and has now been extended to February 2014. In 2010, the credit facility was reduced to €100 million from €250 million as proceeds from divestments of mainly Tree of Life North America were applied to mandatory redemptions of facility loans and a reduction of the credit facility. The successful divestments in 2010 of Tree of Life North America and PANOS Brands are fully in line with Wessanen's strategy to focus on organic food in Europe.

The interest margin on the facility is reduced to 100-225 basis points over Euribor based on the leverage ratio (Net debt to EBITDAE). The financial covenants have been immunised for potential future changes in accounting rules for leases, but have otherwise not changed.