Healthspan may be sold but ‘local jobs are safe’
Friday 28th January 2011, 2:30PM GMT.
HEALTHSPAN boss Derek Coates has confirmed his nutrition business could be sold.
He is considering the move for personal reasons.
National media have reported that Mr Coates was ‘poised’ to sell the business for £150m. and that a deal could be finalised in as little as two months.
Entrepreneur Mr Coates (pictured) yesterday refused to reveal the identity of any potential new owners but said he was looking at the options after receiving several approaches over the past few years.
- Read the full story in the Guernsey Press. See below for subscription details.
- To read Guernsey Press stories in full click here for subscription details. Individual editions are now available online.
Island Life
All about Guernsey
Ambassador of the Year 2011
History & Heritage
Visitor Information
Guernsey's government
Campaigns
Voice For Victims
Voice for Victims is a campaign aimed at promoting the rights of those affected by child sexual abuse.
This is Guernsey
Guernsey Press
Useful Links
…err, I may be being rather simplistic here, but surely if any business owner was to sell their company (or at least, the majority of their shares in it) – then they cannot realistically reassure the staff that they won’t lose their jobs when the new owners take over
…..can they?
Report abuse
Only serves to strenghten the argument for not selling Aurigny to Mr. Coates.
I suspect he may be keen to exit the vitamin business for two reasons; 1) If the UK government finally end the VAT deminimus rule the profits will vanish and it won’t be worth doing that sort of business to Mr Coates.
2) Recent press reports questioning the validity of taking the sort of supplements that Healthspan sell perhaps has hit the market seeing a downturn in profits.
Scarlett..simplistic..I would say realistic.
Report abuse
indeed, DA666, leaving the imminently sinking ship, as it were…!
Report abuse
I fail to see what the negativity is about?
150m is a figure that would seduce most people.
He doesn’t need to worry about money again.
Nice position to be in. Fair play.
Report abuse
New Owners
Will leave the island
Save a fortune on labour and other costs
The exodus continues
Report abuse
Scarlett – quite right.
I wonder if you are aware of the Kraft takeover of Cadbury in 2010? Promises were made then – and by the new owners. Any guesses what happened next?
Report abuse
I think ole Coatee said he gave consideration to his age, perhaps “the Pills like the ones Mother gave you did nothing at all”
Report abuse
I suspect that Mr Coates is still toy chucking after losing out with Aurigny.
No doubt he will make a tidy profit and hopefully decamp to a manor house in Gloucester, or some such.
Report abuse
Why are people being negative, the guy built this business up from scratch for himself, £150m says he done quite well so maybe he like some time to enjoy his money, no use waiting until hes in his grave. Im pretty sure he can sell a business being quite confident staff jobs are safe if thats what he wants, at the end of the day all the people on hear surgesting he is wrong should get together, start a business and employ all his staff with there money. Its upto him what he does with his life and business.
Report abuse
Bloggs – nobody is disputing Mr Coates’ entrepreneurial skills or his right to do what he wants with his business.
All we’re saying is that he should not be giving assurances to his staff about job security as he is in no position to do so – as once he sells the business he no longer has a say in how it runs.
Furthermore, the recent takeover of Cadbury by Kraft demonstrates that “promises” made by prospective owners during negotiations are worth very little.
Report abuse
Paul Le Page
Actually Mr Coates has full control in the how the business is sold on.
As such, he can stipulate conditions which will be clear to the interested party or parties at the negotiating table.
This is where due diligence make & break deals of this nature. Contract of sales can take quite some time to complete.
They can be very exhaustive & cover a whole host of conditions that include looking after the loyal staff that have played their part in building up & making the business what it is.
Only a bad employer will take the “I’m all right, Jack” attitude.
I know quite a few people who have worked there & have never heard a bad word said against him.
The guy must be chirping. Well earn’t. Good on him.
Report abuse
Paul and Bloggs
I am sure Mr Coates will try and look after his staff, but so did Cadburys. It is easier said than done. And why is he selling? And what? 3 separate businesses, or one conglomerate? I suspect Healthspan only. And he had no problems in closing the Alderney Office.
He has done very well in some respects, but I suspect the good days are over, particularly for Healthspan products. And he deserves to come out smiling, but those working there may have an uncertain future. They would anyway, if he stayed.
Report abuse
Paul – should he decide to sell I’m sure Mr Coates will try to look after his staff.
However, no matter how hard he tries and no matter how much due diligence he does, the inescapable reality is that once he signs on the dotted line and sells the company he no longer has a say in how it’s run – unless he retains a controlling share of course.
As I mentioned earlier (and Rees Bryant also pointed out) the sale of Cadbury to Kraft is a recent example of how quickly “promises” made by prospective purchasers can be broken.
Report abuse
Paul
Good post,
I to know people who have worked for him and say he`s a great guy to work for.
Good luck to him.
Report abuse
I indirectly work for him some time ago and having met both him and his wife, i honestly couldnt say a bad thing if i wanted to.
It may be true that Healthspan is not trading as high as it once was, if this is true then well done to him for getting out now because in truth if thats the case then regardless of who owns it, jobs will still be on the line but then i would think anybody in a position to offer £150m would notice if the company was falling and wouldn’t make that sort of offer for a failing company, i would also doubt they would take on a company based in a clear tax haven then loose the staff and shut it down, just to much money involved.
Paul L P i understand what your saying as far as his control after signing on the line but although not 100% i have always believed what Paul is saying and if this is the case, i would surgest Mr Coates is a man of his word and will make jobs safe as part of any deal.
Report abuse
I hear on the grape vine,that by 2012, there will not be any vitamins and food suppliments available anywhere. An end for alternative help,
if the EU has it’s way!!
Has anyone else heard of this?
Report abuse
There is going to be a ban on herbal medicines which do not have rigourous control of ingredients and manufacturing processes and of those which make medical claims not supported by scientific evidence.
This will mean that the larger suppliers will mostly be business as usual but smaller businesses will not be able to afford licence applications. As the health food shops aren’t likely to knowingly stock products from dishonest pill rollers I doubt there will be much improvement in safety for customers. Dangerous products will still be available on the internet.
Report abuse
Google :- European ban on Health Supplements
http://ec.europa.eu/unitedkingdom/press/euromyths/myth92_en.htm
Original directive document
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2004:136:0085:0090:EN:PDF
There is a plethora of perspective relating to the extent to which “Herbal Supplements” will be impacted, and Portugal have already taken steps, however there are exhaustive discussions on this subject online – not least that “Herbal Supplements” are not the same as “Herbal / Homeopathic Remedies” which is probably the primary objective of this legislation.
Lots rest on the way in which these supplements will be marketed in the future, and any particular or specific beneficial health claims made on their behalf.
Conditions of sale will be dependant, implementable and ultimately subject to all sorts of external post-sale influences; market conditions, competition, EU legislation, force majeure etc.
Taper lit…………….. :)
Report abuse