Premier Foods to sell key brands to address debts

UK-based food company Premier Foods is planning to sell its key brands, including Hartley’s jam and Haywards pickles, in an effort to cut its debt of £950m.

The company expects to generate £200m with the sale, which also includes the c£80m spreads business.

The sale of the spreads business is being managed by adviser Spayne Lindsay, while the sale of chilled pizzas and ready-meal maker RF Brookes is being managed by Stamford Partners.

In addition, the pickles business is being sold by adviser McQueen and is expected to bring in £50m for Premier.

Premier Foods CEO Michael Clarke said the company will focus on the eight power brands Hovis, Mr Kipling, Oxo, Sharwood’s, Ambrosia, Bisto, Batchelors and Lloyd Grossman.

"The firm will not sell everything else but has earmarked four or five businesses to offload," Clarke said.

Last year, Premier Foods sold its Quorn brand for £205m and canning business for £182m to offset its increasing debts.