Premier Foods Sells Four Irish Brands For €41 Million
Premier Foods is selling its four Irish brands comprising Chivers, Gateaux, McDonnells and the Erin licence to The Boyne Valley Group for a gross cash consideration of €41.4 million. The disposal represents a further step in Premier’s strategy to focus investment behind its eight ‘power brands’ and follows its recent announcement to sell its chilled food division, Brookes Avana, to the 2 Sisters Food Group.
“The sale of these Irish brands will enable us to focus on supporting our power brands in line with our overall strategy. Coming hard on the heels of the announcement of the Brookes Avana sale agreement, this underlines our determination to streamline the business to help restore profitable growth quickly,” explains Michael Clarke, chief executive of Premier Foods.
For the 12 months to 31st October 2011, the Irish brands had turnover of Eur26.2 million and EBITDA of Eur9.4 million.
John Harkin, chief executive of The Boyne Valley Group, comments: “We are pleased to be acquiring these strong and well established Irish Brands with a loyal customer base. With additional investment, we believe we can grow these brands further. They fit well within our existing food portfolio which includes olive oil, relishes, home-baking and honey.”
In addition, Premier Foods and The Boyne Valley Group have entered into manufacturing agreements within which Premier Foods will continue to manufacture the Irish brands for three years.
