OFT consults on Premier Foods’ Elephant sale to ABF

17-Jul-2012 - Last updated on 18-Jul-2012 at 11:07 GMT

Related tags Mergers and acquisitions

The OFT is consulting on Premier's sale of Elephant Atta to ABF

Anyone concerned about the acquisition of Elephant Atta by Associated British Foods (ABF) is invited to contact the Office of Fair Trading (OFT) by July 30.

The OFT has announced that it is considering whether the acquisition has resulted in a “relevant merger situation” as set out in the Enterprise Act 2002. It is inviting written representation about any competition of public interest issues.

The agency also said it had accepted “hold separate” undertakings given by ABF under section 71 of the Enterprise Act 2002. This means that until the OFT has delivered its decision ABF will continue to operate Elephant Atta as a separate company, even though the takeover deal was completed earlier this month.

£34M in cash

Elephant Atta, previously a subsidiary of Premier Foods, was sold to ABF for £34M in cash on July 6.

The sale included the UK’s leading brand of ethnic flour, Elephant Atta, plus Chakki Gold and Fassel manufactured and packed mainly at the group’s mill in Southampton.

The business had sales of £17.4M last year and generated earning before interest, tax, depreciation and amortisation (EDITDA) of £6.4m.

For more on the sale, click here.