Food & Beverage
Spayne Lindsay advises Premier Foods on its innovative powdered beverages and desserts joint venture as part of its ongoing strategy to maximise value from its grocery infrastructure.
Spayne Lindsay is delighted to announce that it has provided strategic advice to Premier Foods in reaching a conditional agreement with Specialty Powders Holding Limited (“Specialty Powders”) on a stand-alone joint venture to process and pack powdered beverages and desserts at Premier Foods’ Knighton facility in Staffordshire. The transaction is currently expected to complete by the end of June.
Specialty Powders will contribute its wholly-owned businesses, Phoenix Foods and Agglomeration Technology, to the joint venture and Premier Foods will contribute its private label and B2B powdered beverages and desserts business at Knighton (other than two production lines that will be transferred from Knighton to Premier Foods’ manufacturing plant in Ashford, Kent, resulting in significant further efficiencies in Premier Foods’ broader Grocery manufacturing infrastructure). Premier Foods will retain the substantial majority of its branded sales currently made at Knighton, including under the Bird’s, Angel Delight and Marvel brands, which will be manufactured either at its Ashford site or at Knighton by the joint venture under a co-packing arrangement.
Commenting on the transaction, Andrew McDonald, General Counsel of Premier Foods said:
“We were delighted to work with Spayne Lindsay on this highly imaginative and innovative transaction. From deal origination, to structuring and execution, the Spayne Lindsay team brought tremendous energy and creative thinking to a complex and fast moving situation. We continue to be impressed by their commitment to invest time and explore smart corporate finance solutions for their clients.”