Premier Foods, the UK’s largest food producer, has reached an agreement to sell its vinegar and sour pickles business to Mizkan for £41 million.
The sale, which includes the Sarson’s, Haywards and Dufrais brands, is expected to complete by the end of July 2012.
The agreement marks the latest stage in the company’s strategy to prioritise investment into its eight ‘Power Brands’ and divest selected non-core businesses.
The brands sold to Mizkan are predominantly manufactured at Premier’s Middleton factory, near Manchester, and all employees at the site are expected to transfer to Mizkan following a consultation process.
For the year ending 31 December 2011, the vinegar and sour pickles business had reported revenues of £34 million. The gross assets of the business being sold as at 31 December 2011 were £31.7 million.
Mizkan, a 207-year-old privately held international manufacturer based in Japan, is one of the leading vinegar manufacturers in the world with operations in Japan, the United States, the UK and other Asian countries.
Commenting on the sale, Premier Foods’ CEO Michael Clarke said: “This agreement represents another important step in our strategy to focus on our Power Brands. I’m delighted that we have found a buyer such as Mizkan. Our vinegars and sour pickles business and employees will greatly benefit from being part of a global player focused on vinegar and liquid condiments.”
Kazuhide Matazaemon Nakano VIII, CEO of Mizkan, commented: “We are excited to acquire two strong and iconic brands that have such a deep heritage in the UK. Sarson’s and Haywards are beloved by consumers and we look forward to investing in the brands and adding to their legacy. They fit well with our global portfolio, are an excellent strategic fit and provide a solid foundation for growth in the UK.”
Hertfordshire-based Premier reported sales last year of £2 billion, with a trading profit of £188 million. Last year 99 per cent of British households bought a product from one of the company’s brands. Premier employs 12,000 people across more than 40 sites.
