UK-based Premier Foods has completed the sale of its sweet pickles and table sauces business to Japanese food firm Mizkan for pound 92.5m in cash.
The companies had entered into an agreement over the deal on 30 October 2012. This move is a part of Premier Foods strategy to focus on its grocery business and unlock value in bread segment.
The sale includes production, distribution, sales, marketing and licensing of the Branston branded sweet pickle, ketchup, relish, salad cream and mayonnaise, as well as Premier Foods' Bury St Edmunds factory in Suffolk, UK.
Under the terms of the co-packing agreement, Mizkan will continue to manufacture certain cooking sauces and other products at the Bury St Edmunds facility for the next 15 years.
For the 12 months to 31 December 2011, the sweet pickles and table sauces business posted sales of pound 66m, EBITDA of pound 11.7m, and trading profit of pound 8.5m.
With the completion of the deal, Premier Foods has gained pound 370m through divestments since March 2012, higher than the pound 330m target it planned to reach by June 2014, as part of its new financing arrangements.
