Spice manufacturer McCormick & Company has dropped its plan to make further acquisition bid for Premier Foods.
The announcement follows three proposals by McCormick for Premier Foods, which were rejected by the latter citing undervaluation of the company and its future prospects.
The last bid offer made by McCormick was 65p per share of Premier Foods, which followed previous offers of 52 and 60 pence per share respectively, that were turned down by Premier Foods.
McCormick said: "After careful consideration, concluded that it would not be able to propose a price that would be recommended by the Board of Premier Foods while also delivering appropriate returns for McCormick shareholders.
"Accordingly, McCormick has withdrawn its proposal to acquire Premier Foods."
Following McCormick's decision on proposed takeover, Premier Foods stated in its release: "The Board sees a strong future for an independent Premier Foods, and believes that the foundations have been laid for significant growth and shareholder value creation.
"Premier Foods has a valuable portfolio of market leading brands, extensive distribution across key retail channels, a well-invested manufacturing base and strong operational cash flows."
Premier Foods has also stated that it intends to take its new strategic initiatives forward to enhance the company's current capacities; infrastructure and brand equity to expand into new formats, channels, and markets.
It also emphasized that it hopes to foster the long-term cooperation it signed with Nissin Foods, which is intended to expand Premier Foods' growth opportunities.
Image: McCormick abandons pursuit of Premier Foods. Photo: Courtesy of Premier Foods.
