FDBusiness.com

Premier Foods to Sell Branston Pickles and Sauces Business

 Breaking News
  • Deliveroo, Costa Coffee and BrewDog are the UK’s Fastest Growing Brands Deliveroo, Costa Coffee and BrewDog are growing in value faster than any other UK brands, according to the 2019 BrandZ™ Top 75 Most Valuable UK Brands, announced by WPP and Kantar. Vodafone remains the UK’s most valuable brand, worth US$26.5 billion (£21.5 billion), followed by HSBC and Shell. Deliveroo, at no.50 after increasing its value 54% [...]...
  • Arla Foods Ingredients Obtains GRAS Approval For Alpha-lactalbumin in Infant Formula Arla Foods Ingredients has obtained Generally Recognized as Safe (GRAS) approval relating to its use of alpha-lactalbumin in infant formula. The US Food & Drug Administration (FDA) issued the company with a GRAS Notice known as a ‘no objection letter’. It states that it has no questions regarding the safety of fractionated whey protein concentrate [...]...
  • Java Republic is ‘Beverage Company of the Year 2019’ in Ireland Java Republic won the award of Beverage Company of the Year at the recent 2019 Food & Drink Business Awards. These prestigious awards celebrate the very best in food and drink manufacturing, retail, and food service across the island of Ireland. The Awards recognise the very best in the industry across 18 categories. For Java Republic winning Beverage [...]...
  • First Half Profits Fall at Bakkavor Group Bakkavor Group, the leading provider of fresh prepared food in the UK with a growing international presence in the US and China, has reported a sharp fall in operating profit to £29.3 million for the 26-week period ended 29 June 2019, compared to £54.1 million in the prior period. Group revenue was up 1.4% at [...]...
  • Norwegian Salmon Ranked Most Sustainable Among World’s Largest Protein Producers Norwegian aquaculture companies hold four out of the top 10 spots in the 2019 Coller FAIRR Protein Index, ranking 60 of the world’s largest publicly-listed protein producers on how they perform on sustainability. The Index looked at how the world’s largest producers of meat, dairy and seafood performs on various risk factors relating to sustainability. The [...]...

Premier Foods to Sell Branston Pickles and Sauces Business

Premier Foods to Sell Branston Pickles and Sauces Business
October 30
14:23 2012

Premier Foods has agreed to sell its sweet pickles and table sauces business to Mizkan of Japan for a cash consideration of £92.5 million. Once the disposal is completed, Premier will have delivered around £370 million in disposal proceeds since March 2012, significantly exceeding the £330 million target it committed to achieve by June 2014 as part of its new financing arrangements. This will represent a reduction of approximately 30% in the company’s net debt since the position reported at the half year.

The disposal of the sweet pickles and table sauces business includes Branston sweet pickle, ketchup, relish, salad cream and mayonnaise, together with the company’s Bury St Edmunds factory in Suffolk. Completion of the disposal is expected to take place early in 2013 and all employees at the site are expected to transfer to Mizkan following an appropriate consultation process.

For the financial year ended 31 December 2011, sales of the sweet pickles and table sauces business were £66.0 million, of which 54% were branded sales. EBITDA for the year ended 31 December 2011 was £11.7 million and trading profit was £8.5 million.

Mizkan is one of the leading vinegar manufacturers in the world with operations in Japan, the US, the UK and other Asian countries. It has a stable of well-known international brands under the ‘mizkan’ umbrella brand and is a leader in the liquid condiment category.

Following completion of the disposal, the branded sales mix of Premier’s Grocery business will increase to approximately 90%.

Michael Clarke, chief executive Officer of Premier Foods, says: “I’m delighted to have exceeded our disposal target 20 months early while at the same time delivering three successive quarters of sales growth and taking £40 million of overhead costs out of the business this year. We can now focus our attention on driving further momentum in our Grocery business and unlocking value in Bread.”

Indeed, Premier Foods has hired US-based financial advisors Goldman Sachs to seek potential buyers for its Hovis bread division.

He continues: “Our disposals since March have achieved a healthy average EV/EBITDA multiple of 8.9x based on current year trading and expected overhead cost reductions. This is a good result in the current market.”

Kazuhide Matazaemon Nakano VIII, chief executive of Mizkan, comments: “Branston Sweet Pickle is an iconic brand that has established a market leading position. The Branston brand is also an excellent strategic fit with our global portfolio and adds to our solid foundation for growth in the UK.”

Mizkan had already purchased Premier Foods’ vinegar and sour pickles business, including the Sarson’s, Hayward’s and Dufrais brands, for £41 million earlier in the year.

Meanwhile, Premier Foods has completed the disposal of sweet spreads and jellies business to Hain Celestial. Premier Foods has received a cash payment of £170 million and will receive shares in Hain Celestial worth at least £30 million to make an aggregate consideration of £200 million.

About Author

mike

mike

Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 1, 2019PPMA Total Show
  • October 17, 2019Future Food-Tech
  • November 18, 2019Plastics Caps and Closures Conference 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements