FDG has sold 17 bars to Mainpaint Ltd, a company backed by NBGI Private Equity, for a consideration which is not expected to result in any return to shareholders. 

The sale, following an administration process, follows FDG obtaining additional financing in January 2008 and subsequently exploring a variety of strategic options over the past six months including raising new equity, reversing another business into FDG and a sale of the business, including the possibility of an offer to buy FDG’s shares. Despite the support of FDG’s principal shareholders and bankers, the deteriorating market conditions have resulted in FDG being unable to achieve a transaction to continue FDG’s operations. 

The Board of FDG commented: 

’The Group has been facing the most challenging economic conditions for decades which has reduced operational performance and has restricted investment in the Group’s brands. These conditions have prevented the Group raising the further financing it needed. The sale of the business has secured the jobs of 300 of the Group’s employees.’ 

The Board of FDG was advised on its strategic options by McQueen.

Enquiries:

George Fleet: 020 7484 8800