Ornua Nutrition Ingredients, part of Ornua Ingredients Europe, has agreed to sell its powder blending and manufacturing business in the UK to the portfolio of its longstanding strategic customer AYMES.

The business will continue as a going concern and, under the trading name Allicio, plans to retain the existing 85 employees within the company.

Subject to consultations with the transferring employees, the deal is expected to close by the end of this month.

While the size of the deal is undisclosed, the accounts of Ornua Nutrition Ingredients UK Ltd show a company that has made consistent losses over recent years.

Cumulative losses in the four years from 2019 to 2022 amount to £6.18m (€7.17m) and include the writedown of the value of the company’s plant and machinery to almost zero in 2022.

Net assets for the company at the end of 2022 were just over half a million pounds.

Bulk powder trading

Ornua bulk powder trading is not included in the deal and will continue to source and sell powders to its existing customer base.

Ornua added in a statement that the sale will not affect Ornua Ingredients Europe’s other sites nor Ornua Foods UK’s operations.

The major cheese cutting and packing plant located alongside the business being sold will remain part of Ornua Foods UK and will be the subject of further capital investment this year, the statement added.