Premier Foods and Nissin Foods Holdings Company have entered into a relationship agreement on terms and conditions, following the announcement by US spices firm McCormick that it was withdrawing its takeover bid for Premier last month.
Premier Foods has fended off a hostile takeover bid from McCormick & Company – because it “significantly undervalues [the manufacturer’s] growth prospects” – and agreed a partnership with Nissin Foods Holdings.
Premier Foods’ plans to sell its troubled Hovis plant bakery business should become clearer over the coming months, as news emerged towards the end of last year that a shortlist of three candidates were interested in buying or investing in the business.
Premier Foods may have to settle for a joint venture (jv) partner for its troubled Hovis bread business if it fails to secure an outright buyer, as it tries to reduce its mountain of debt and avoid the prospects breaching banking covenants.
Food manufacturer Premier Foods moved closer to reducing its debt mountain today (October 30) with the confirmation of a conditional agreement to sell its sweet pickles and table sauces business to Mizkan for £92.5M in cash.
The coming year looks set to be a pivotal one for Premier Foods. City analysts suggest that the UK's largest food producer would need to have turned around its fortunes by 2014 or risk breaching its financial covenants.
Britain’s biggest food manufacturer Premier Foods expects to achieve efficiency savings of £40M earlier than expected as a result of its restructuring plans, it emerged in its half-year results released today.