FDBusiness.com

UK-based food and drink group Princes, which is owned by Mitsubishi of Japan, is reported to be one of the potential buyers of Premier Foods’ canning operations in East Anglia, England. Incorporating sites at Wisbech in Cambridgeshire and Long Sutton in Lincolnshire, Premier’s canning business is valued at up to £250m by some analysts.

Loyd Grossman sauces in pouches, canned beans, soups and pasta are produced at Wisbech, while Long Sutton manufactures Fray Bentos pies, baked beans, canned meat and canned vegetables.

Premier, which is the UK’s largest domestic food processor, is anxious to reduce its £1.4b debt burden and has already put its meat-free business, based on the Quorn brand, up for sale. Indeed, the Premier board is open minded about disposals, provided they deliver shareholder value and accelerate the reduction of average net debt/EBITDA.

Operating from ten manufacturing sites, Princes has a turnover of over £1b and has a broad product range including canned fish, meat, fruit and vegetables, sandwich fillings, pasta, sauces, cooking and olive oils and microwavable ready meals. Its core soft drinks products include bottled water, fruit juice, squash and carbonates.