Premier Foods Spreads Sold to Hain Celestial Group
Premier Foods Spreads Sold to Hain Celestial Group
Transaction
Overview
Spayne Lindsay is delighted to announce the sale of Premier Foods' sweet spread business to the Hain Celestial Group
Premier Foods announces that it has reached a conditional agreement to sell its sweet spreads and jellies business, including the Hartley’s, Robertson’s, Frank Cooper, Keiller, Gales and Sun-Pat brands, to The Hain Celestial Group, Inc. [NASDAQ:HAIN], for a cash and share consideration of £200 million. The sale is subject to approval by Premier Foods’ shareholders and consent from Premier Foods’ banking syndicate and is expected to complete by the end of October 2012.
This sale represents the third divestiture the Group has announced this year following agreement on its new financing arrangements in March 2012, and continues its strategy of prioritising investment behind its Power Brands and divesting selected, non-core businesses.
The sale includes Hartley’s, Britain’s most popular jam and a category leader in jelly-to-make and ready-to-eat jelly, and a portfolio of marmalade brands in Robertson’s, Frank Cooper, Keiller and the licence for Rose’s marmalade. Also included in the sale are Sun-Pat, the leading brand of peanut butter in the UK, Gales, the UK’s number two brand in honey and significant private label and business-to-business sales. The products are predominantly manufactured at the Group’s Histon factory, near Cambridge, which will also be sold to Hain Celestial as part of the agreement. All employees at the site, with the exception of a number of Group employees, are expected to transfer to the buyer following an appropriate consultation process.
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