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Selling can attract attention as well as profit

Selling can attract attention as well as profit

Selling can attract attention as well as profit

Trading off part of a business can not only pocket the seller with a chunk of money, it can also make headlines and generate interest in the surviving aspects of the company.

This was recently highlighted by an article which appeared on the pages of the BBC website, entitled 'Highland Spring buys Irish bottled water firm'.

The piece focuses on the sale of the water production aspect of Greencore, an Irish convenience food producer which sold its water-bottling facilities to the industry giant for £17.5 million ($29 million).

While Greencore has clearly secured a significant financial boost at what is a difficult time economically, the added benefits of appearing in an article on such a reputed news provider's website will only add to the company's advancement.

The online PR generated could result in an increase in click-throughs from the webpage and a potential increase in business interest in its surviving ventures.

The deal could also serve to benefit Highland Spring, which was also linked from the article and could generate business interest as a result.

Greencore made its own label bottled water for supermarkets. The water was bottled at the Campsie Spring plant in Lennoxtown and Blaen Twyniin Wales.

The deal makes Highland Spring the UK's largest bottled water firm, with 12 production lines, five plants and 400 workers - a fact that edges the firm closer to its target of turning over £100 million ($165 million) in the medium term.

Les Montgomery, chief executive of Highland Spring, said: "This acquisition will mark a major milestone in the history of Highland Spring and complements our expansion strategy perfectly."

Highland Spring, which is 30 years old, will now have the capacity to produce 232 million liters of water every year, with 2009 turnover expected to reach £54 million ($89 million) and a profit margin of £3.5 million ($5.8 million).

The company has had approximately £60 million ($99 million) invested in it over the past three decades by its Dubai-based owners, the Tajir family.

The bottled water market is believed to be worth £1.497 billion ($2.470 billion) per year.

Greencore said it had conducted the deal in order to focus its efforts on its core businesses.

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Selling can attract attention as well as profit

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