Premier Foods plc has sold ethnic flour business Elephant Atta to UK rival Associated British Foods, the latest disposal in its move to cut debts.
The GBP34m (US$52.8m) deal includes the Elephant Atta brand, which Premier described as the “leading” ethnic flour brand in the UK. ABF will also attain brands like Elephant Chakki Gold and Fassal.
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Premier CEO Michael Clarke said: “We are continuing to deliver on our growth strategies, growing our Power Brands, divesting selected, non-core businesses and reducing costs on track with our plans.”
The company’s “power brands” include Hovis bread, Sharwood’s cooking sauces and Ambrosia custard.
Last month, Premier sold its vinegar and sour pickles business, including the Sarson’s and Haywards brands, to Japanese food group Mizkan.
There has been speculation Premier is also looking to offload its Hartley’s spreads business. Hain Celestial has been named as a potential buyer, while private-equity firms are also said to be interested.
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By GlobalDataThe disposals are part of plans to refocus Premier’s business, reduce costs and lower debts. The sell-offs started before Clarke joined and included the sale of its meat-free business, which included the Quorn brand. However, under Clarke, the process has intensified with the plan to focus on selected “power brands”.
