Premier Foods has received a EUR50m (US$66m) bid from two private equity firms for French frozen patisserie business Martine Spécialités.
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The UK’s largest food group, which is looking to pay down over GBP1.8bn (US$2.63bn) in debt, said a “firm offer” had come from Cerea Capital and Banexi Capital.
Premier said the offer is “acceptable in principle” and the company has started consulting with employees over the proposed deal.
Martine supplies own-label frozen patisserie products to retailers in the UK and France and became part of the Premier empire when the company bought RHM in 2007.
In the nine months to 31 December 2007, Martine generated net sales of GBP34.4m and pre-tax profit of GBP4.4m.
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By GlobalDataThe proposed sale of Martine comes a week after Premier said it had received a GBP38m offer from French bakery group Nutrixo for its Le Pain Croustillant and Sofrapain businesses.
Chief executive Robert Schofield said: “The proposed disposals of LPC, Sofrapain and Martine are consistent with Premier’s strategic focus on its business in the UK and Republic of Ireland and will assist in reducing Group debt with anticipated total proceeds of approximately GBP50m.”
The parlous state of Premier’s balance sheet has been the centre of speculation in recent weeks. Last week, it was claimed that Premier was close to sealing a deal that would see the company issue new equity and offer as much as 40% of its enlarged share base to private equity investors.
