Thu, 19 Jul 2018 | DIVISION SALE
Facing mounting debt and unpopular management, Premier Foods is considering the sale of parts of its business.
Its chairman Keith Hamill said: “I don’t think anything is off the table,” noting that Premier Foods would only consider an “exceptional price” for its assets. This would force the company to pay off its debt and generate investment for its future.
Household brands like Batchelors, Cup a Soup, Angel Delight and Bisto are under consideration for sale. It is expected that their sales will raise £200 million.
The company’s second largest shareholders, Hong Kong-based hedge fund Oasis Management, have been urging Premier Foods to make haste on its investment plans, even threatening to oust Gavin Darby, the firm’s chief executive, from the company at the upcoming AGM.
Darby, however, has said that such publicity and commotion may boost interest amongst buyers.
He said: “The benefit of this process is there can’t be a single investment banker or food company that is not aware that if the price is right the board would look at an asset sale.”
With only a market value of £390 million, Premier Foods faces £496 million in net debt and £4.5 billion in pension liabilities. Its debt is estimated to be more than three times the value of the company’s underlying profits.
Despite this, the company is predicted to meet profit expectations after having demonstrated a 1.7 per cent increase in sales in the quarter finishing on 30 June. Owing to a successful advertising campaign, its Mr Kipling cake subsidiary experienced a 14 per cent sales rise.
Hamill described the business as a “hardworking company” and stated that “we know that we need to find ways to accelerate the turnaround”.
Darby concluded: “Of course I would like the share price to by higher. I am convinced it will be if we continue doing the things we are doing, and I have invested personally in that expectation.”
For more news stories about business divisions for sale click here. For all our business listings, click here.
The company is a wholesaler of an extensive range of specialist ancillary welding equipment relating primarily, but not exclusively, to the stainless-steel industry. The business sources its products from a wide-ranging network of reliable, internati...
A well formed food distribution supply chain business. Work with number of food producers, wholesalers and retailers in and around the Kent area. Currently employing 10 members of staff.
An exceptional opportunity awaits in Goole for those looking to secure a foothold in the construction industry. This is more than a business; it’s a chance to lead a company known for its dedication to quality and service.
13
|
Nov
|
BWP sets sights on USA after BGF backing | BUSINESS NEWS
A Marlow-based marketing and brand agency has set its sights...
13
|
Nov
|
Canadian pilates firm Merrithew moves to buy UK counterpart | BUSINESS SALE
Align-Pilates, an Evesham provider of pilates equipment, has...
13
|
Nov
|
Hood Group eyes more growth after management buy-out | MBO/MBI
A Southend-on-Sea insurance provider has completed a managem...
05
|
Nov
|
Food giant confirms talks over Hovis sale | BUSINESS SALE
Premier Foods has confirmed that it is engaged in ongoing ta...
11
|
Jun
|
Hovis owners eyeing £150m sale of bread brand | BUSINESS SALE
The Gores Group has begun a sales process to sell its 51 per...
04
|
Apr
|
Premier Foods pushing for improved US offer | BUSINESS SALE
The food manufacturer behind famous British brands such as M...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.