Wincanton, the Chippenham-based logistics group which recorded a £75.5m first half loss, has sold its 20% investment in Culina Logistics for £11m.
The disposal is in line with Wincanton's strategic objective of reducing its existing level of debt through the disposal of specific non-core operations. Shropshire-based Culina provides primarily chilled logistics to the food and drink industry across the UK and Wincanton's stake resulted from the two companies merging their chilled consolidation activities in March 2009.
The book value of Wincanton's investment in Culina, which is accounted for as an associate, is £14.5m and the profit after tax attributable to the company's investment for the year to March 31, 2011 was £1.2m.
Wincanton chief executive Eric Born said: "This is another important step in the reduction of our debt through the disposal of non-core investments and allows us to focus our attention on delivering profitable growth in the UK and Ireland business in the future."
Last year the group refinanced its debt through a £185m bank facility and a £75m term facility following completion of the sale of its remaining loss-making European operations to German company Rhenus.
