Premier Foods sells Sarsons and Haywards for £41m
Published: 15th Jun 2012 07:46:56
Premier Foods is selling its vinegar and sour pickles business as it continues its strategy of concentrating on "power brands".
It will sell Sarsons and Dufrais vinegars and Haywards pickles for £41m to Japanese food producer Mizkan.
The products are predominately made in Middleton near Manchester and Premier said all staff will transfer to Mizkan.
Premier is concentrating on eight brands it thinks have the best prospects, including Hovis and Oxo.
Others include Mr Kipling, Bachelors, Oxo and Sharwood's.
The sale to Mizkan includes Premier's factory at Bury St Edmonds in Suffolk, which produces pickled beetroot and piccalilli.
Premier said in a statement this latest move represented a further step in its strategy to prioritise investment behind the eight brands.
Mizkan said it was delighted to have bought the brands, which it said were "beloved" by consumers and provided a solid foundation for further growth in the UK.
Premier, which is the country's largest food manufacturer, ran into trouble last year partly because of a huge pension scheme deficit.
In March this year it renegotiated its bank debt and was given more time to repay the £1bn of loans.
The company, the UK's largest food manufacturer, ran up large debts after buying up brands including Homepride and Fray Bentos.
At the beginning of this year it said it would cut 600 jobs, about 5% of its 12,000-strong workforce, to trim costs.
Its banks have now extended its repayment deadline from 2013 to 2016.
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Harvard CitationBBC News, 2012. Premier Foods sells Sarsons and Haywards for £41m [Online] (Updated 15th Jun 2012)
Available at: http://www.ukwirednews.com/news/1434804/Premier-Foods-sells-Sarsons-and-Haywards-for-41m [Accessed 24th Apr 2014]
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