Premier Foods sells vinegar brands for £41m
Mike Clarke, CEO of Premier Foods
Premier Foods has announced the acquisition of its vinegar and sour pickles business by Japanese business Mizkan Group.
The sale includes Premier’s Sarson’s, Haywards and Dufrais brands, for a cash consideration of £41m.
It will mean that Mizkan will takeover Premier’s Middleton factory, near Manchester, with all employees expected to be transferred following a consultation process.
The move includes transfer of the production, distribution, sales and marketing of the brands, as well as the pickled beetroot and piccalilli lines at the Group’s Bury St Edmunds factory.
Michael Clarke, Chief Executive Officer, Premier Foods said: “This agreement represents another important step in our strategy to focus on our Power Brands.
“I’m delighted that we have found a buyer such as Mizkan. Our vinegars and sour pickles business and employees will greatly benefit from being part of a global player focused on vinegar and liquid condiments.”
The acquisition is expected to be completed in July, and the proceeds of the sale will be used to pay down debt.
Kazuhide Matazaemon Nakano VIII, Chief Executive Officer, Mizkan, commented: “We are excited to acquire two strong and iconic brands that have such a deep heritage in the UK.
“Sarson’s and Haywards are beloved by consumers and we look forward to investing in the brands and adding to their legacy. They fit well with our global portfolio, are an excellent strategic fit and provide a solid foundation for growth in the UK.”
This was posted in Bdaily's Members' News section by Tom Keighley .