FDBusiness.com

Premier Foods Disposing of Sweet Spreads and Jellies Business to Hain Celestial

 Breaking News
  • Another Year of Progress For Nestlé Nestlé has reported a 2.1% increase in sales to SFr91.4 billion (€80.6 billion) for 2018 with organic growth of 3% and group RIG of 2.5%, which was at the high end of the food and beverage industry, helped by faster innovation and successful new product launches. 2018 organic growth was supported by stronger momentum in [...]...
  • Fast-growing Asia Maternal Nutrition Market to Boost Demand For Dairy ingredients and Formula Maternal nutrition is a hot new opportunity in emerging markets, according to the latest report from food and drink experts, Zenith Global. In many parts of Asia, the concept of optimal nutrition during the first 1,000 days of a baby’s life (from conception to two years old) is capturing the attention of mothers and their [...]...
  • Innovation in the Spotlight at UK’s Largest Packaging Show Packaging Innovations, Empack and Label&Print 2019 returns to Birmingham’s NEC later this month with its most innovative show to date. The show, which also includes Contract Pack, Ecopack and Industrial Pack, will showcase more product launches and innovation from across the industry than ever before as it welcomes over 300 suppliers. As always, Innovation is the [...]...
  • £100 Million Müller Programme to Transform UK Fresh Milk Business Müller Milk & Ingredients, Britain’s largest producer of branded and private label fresh and flavoured milk, cream, butter and ingredients, has launched a £100 milliion cost and margin improvement programme which aims to secure a vibrant and sustainable future for the business, to the benefit of consumers, customers, employees and farmers. Project Darwin includes a comprehensive [...]...
  • Coca-Cola European Partners Continues to Focus on Driving Profitable Revenue Growth Coca-Cola European Partners has reported its fifth consecutive quarter of revenue growth and announced plans to trade on the London Stock Exchange. Revenue grew by 4.0% to €11.5 billion and comparable operating profit grew by 7.0% to €1.6 billion in 2018. Earnings per share were €2.30, an increase of 8.5%. Coca-Cola Zero Sugar led growth in [...]...

Premier Foods Disposing of Sweet Spreads and Jellies Business to Hain Celestial

Premier Foods Disposing of Sweet Spreads and Jellies Business to Hain Celestial
August 23
11:34 2012

Premier Foods has agreed to sell its sweet spreads and jellies business, including the Hartley’s, Robertson’s, Frank Cooper, Keiller, Gales and Sun-Pat brands, to The Hain Celestial Group for a cash and share consideration of £200 million. The sale, which is subject to approval by Premier Foods’ shareholders and consent from Premier Foods’ banking syndicate, expected to complete by the end of October 2012. The consideration will be satisfied by £170 million in cash and the issue of shares in Hain Celestial with a value of at least £30 million at completion.

This sale represents the third divestiture Premier Foods has announced this year following agreement on its new financing arrangements in March 2012, and continues its strategy of prioritising investment behind its Power Brands and divesting selected, non-core businesses.

The sale includes Hartley’s, Britain’s most popular jam and a category leader in jelly-to-make and ready-to-eat jelly, and a portfolio of marmalade brands in Robertson’s, Frank Cooper, Keiller and the licence for Rose’s marmalade. Also included in the sale are Sun-Pat, the leading brand of peanut butter in the UK, Gales, the UK’s number two brand in honey and significant private label and business-to-business sales. The products are predominantly manufactured at Premier Foods’ Histon factory, near Cambridge, which will also be sold to Hain Celestial.

For the year ended 31 December 2011, sales of the sweet spreads and jellies business were £165.0 million, of which 59% were branded sales. EBITDA3 for the year ended 31 December 2011 was £38.3 million and Trading profit was £36.1 million. The gross assets of the business being sold were £161.0 million as at 30 June 2012.

Michael Clarke, chief executive of Premier Foods, comments: “This divestment is a major step forward in our strategy to simplify the business and focus on our Power Brands. Following completion of this sale, we will have raised around £275 million of the £330 million disposal proceeds that we committed to achieving by June 2014. This will represent a 22% reduction in our net debt since the half year.”

Irwin D Simon, founder, president and chief executive of Hain Celestial, says: “In order for Hain Celestial to become the largest healthy food company in the United Kingdom, we needed to expand into ambient grocery where we have seen health and nutrition gain traction with consumers. The acquisition of the Premier Foods brands furthers our goal to expand in the United Kingdom with the addition of ambient grocery products.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements