Pic-covennyFridayfinal
The fifth most popular news story of the year was “City: Could RF Brookes and Avana Bakeries be Greencore’s consolation prize?” published in February.
In a note published ahead of Premier Foods’ full-year results, Panmure Gordon director of equity research, Graham Jones said: “With Greencore looking likely to miss out on Northern Foods, we wonder whether it would make sense for it to turn its attention to Brookes Avana.”
RF Brookes makes chilled ready meals for M&S from a site at Rogerstone, Gwent, and pies, pizzas and other savoury products for M&S at Wigston, Leicester. Avana makes own-label large celebration cakes, Christmas puddings and chilled desserts from factories in Newport.
Sales for the two in 2010 were likely to be just over £200m and, while profits were currently depressed, “a valuation of £120-140m could make sense”, said Jones.
To read the article in full, click here.
What happened next? In March Ranjit Borparan acquired Northern Foods for £342M.
In December, Premier sold its RF Brookes and Avana Bakeries business to Ranjit Boparan’s 2 Sisters group for £30M.
Top five news stories of 2011
1) PoleStar Foods axes 232 jobs at Okehampton factory
2) Amy’s Kitchen prepares UK manufacturing base
3) Nervous City expects more trouble for Premier Foods
4) RF Brookes loses M&S contract, 200 jobs at risk
5) Could RF Brookes and Avana be Greencore’s consolation prize?