Princes To Acquire East Anglian Canned Grocery Operations Of Premier Foods

Princes Limited, a producer of food products and soft drinks, has reached an agreement to acquire East Anglian canned grocery operations of Premier Foods plc, a supplier of food and beverages to the retail grocery and foodservice markets, for consideration of GBP182 million. Both the companies are based in the UK.

For the year ended December 31, 2010, the disposed business is expected to have revenues of GBP334.2 million, EBITDA of GBP31.7 million and a trading profit of GBP27.8 million.

The sale is expected to complete in late March 2011.

Rumor (January 25, 2011):

According to Reuters, The Financial Times reported that Princes is planning to acquire the canning operations of Premier Foods.

The transaction is reported to be valued at approximately GBP220 million.

Deal Value (US$ Million) 293.43

Deal Type - Acquisition

Sub-Category - Asset Purchase

Deal Status - Announced: 2011-02-08

Deal Participants

Target (Company) - Premier Foods plc - Canning Operations

Acquirer (Company) - Princes Limited

Vendor (Company) - Premier Foods plc

Deal Rationale
This acquisition is strategic fit for Princes group and will enable it to further grow its business in the UK and continental Europe by offering its customers a broader range of ambient food products and brands. Premier Foods' key priorities are to grow its branded business and to reduce its level of debt and leverage ratio. This sale contributes to both: it materially increases the proportion of branded sales and materially reduces the debt as well as contributing to reducing the leverage ratio. The sale will simplify Premier's operations and allows it to concentrate its efforts on current portfolio of great British brands.

SOURCE: Princes Limited