Food giant in £66m deal

NORTHERN FOODS has struck a £66m deal to sell its Irish Batchelors tinned beans and peas business to the country's biggest tea importer, Barry's.

The sale, which also includes Irish distributor Beck Smith, marks a further acceleration of Northern's disposal process since chief executive Joe Stewart was ousted in September. It comes days after Pat O'Driscoll was appointed as his successor.

Unilever split up the Batchelors division-several decades ago, retaining the British operations, while Beechams of Ireland took the Irish.

Northern bought the Irish division in 1986, and Unilever sold its side to Campbell Soup of the US in 2001.

Barry's, which is run by former Irish foreign minister Peter Barry, has been backed by Bank of Scotland in today's deal.

Northern still wants to sell its distribution and flour-milling divisions, to focus on ready meals.