Premier Foods plc has offloaded another of its brands, this morning (30 October) announcing the sale of Branston pickle to Japanese group Mizkan.
The UK food manufacturer has agreed to sell its sweet pickles and table sauces to Mizkan for GBP92.5m. The deal includes Branston sweet pickle, ketchup, relish, salad cream and mayonnaise, as well as Premier’s factory in Bury St Edmunds.
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The sale is the second transaction between Premier and Mizkan in four months. In June, Premier sold its vinegar and sour pickles business, including the Sarson’s and Haywards brands, to Mizkan for GBP41m (US$65.8m). Last month, Mizkan agreed to sell its own production facility in the UK town of Burntwood to meet anti-trust concerns about the deal.
Premier’s sale of the Branston-led business is just the latest in a series of disposals the company has made to reduce its debts and focus on a select group of so-called “power brands”.
CEO Michael Clarke said the sweet pickles sale meant Premier had exceeded a target of bringing in GBP330m from disposals by June 2014. The latest agreement with Mizkan means Premier, once the deal is completed, will have generated around GBP370m.
“We can now focus our attention on driving further momentum in our grocery business and unlocking value in bread,” Clarke said.
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By GlobalDataLast week, reports claimed Premier has hired Goldman Sachs to look into the sale of its bread division, which includes one of its power brands in Hovis. Premier refused to comment.
