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Branston sold by Premier Foods to Japan's Mizkan | Branston sold by Premier Foods to Japan's Mizkan |
(about 9 hours later) | |
Premier Foods has agreed to sell its Branston range of pickles and sauces to Japanese company Mizkan for £92.5m. | Premier Foods has agreed to sell its Branston range of pickles and sauces to Japanese company Mizkan for £92.5m. |
As well as the Branston products, the sale also includes the firm's factory at Bury St Edmunds in Suffolk. | As well as the Branston products, the sale also includes the firm's factory at Bury St Edmunds in Suffolk. |
The deal is set to be completed in 2013, when workers at the plant are expected to become Mizkan employees. | The deal is set to be completed in 2013, when workers at the plant are expected to become Mizkan employees. |
Premier Foods has been selling off a number of what it considers non-core brands, including Sarson's vinegar and Robertson's jam. | Premier Foods has been selling off a number of what it considers non-core brands, including Sarson's vinegar and Robertson's jam. |
It had run up debts of more than £1bn in recent years, and in March it secured more time from its banks to pay back its loans. | It had run up debts of more than £1bn in recent years, and in March it secured more time from its banks to pay back its loans. |
The firm has said it will concentrate on eight key brands, which include Oxo and Bisto. | The firm has said it will concentrate on eight key brands, which include Oxo and Bisto. |
Shares in Premier Foods rose 7.4% to 108 pence on Tuesday. | |
'Ahead of target' | |
Premier Foods said its latest sale meant it had raised about £370m in sales since March this year, beating the £330m target it had set out to achieve by June 2014. | Premier Foods said its latest sale meant it had raised about £370m in sales since March this year, beating the £330m target it had set out to achieve by June 2014. |
In June, it sold its Sarson's and Dufrais vinegars and Haywards pickles for £41m, also to Mizkan. | In June, it sold its Sarson's and Dufrais vinegars and Haywards pickles for £41m, also to Mizkan. |
In August, it agreed the sale of its sweet spreads and jellies unit, which included the Robertson's, Hartley's and Sun-Pat brands, to the Hain Celestial Group for £200m. | In August, it agreed the sale of its sweet spreads and jellies unit, which included the Robertson's, Hartley's and Sun-Pat brands, to the Hain Celestial Group for £200m. |
"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 £40m of overhead costs out of the business this year," said Premier Foods chief executive Michael Clarke. | "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 £40m of overhead costs out of the business this year," said Premier Foods chief executive Michael Clarke. |
Mizkan is a 200-year-old food producer which started in 1804 making sake and now specialises in making vinegar. | Mizkan is a 200-year-old food producer which started in 1804 making sake and now specialises in making vinegar. |
It was ordered to sell its factory near Lichfield in Staffordshire by competition authorities following its purchase of Sarson's and Haywards. | It was ordered to sell its factory near Lichfield in Staffordshire by competition authorities following its purchase of Sarson's and Haywards. |
Its chief executive Kazuhide Matazaemon Nakano said: "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." | Its chief executive Kazuhide Matazaemon Nakano said: "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." |