Sector News

Premier Foods explores options as part of regular review

June 30, 2017
Food & Drink

Premier Foods, the owner of British food brands including Mr Kipling cakes and Oxo stock cubes, is exploring options as part of a regular review into maximizing shareholder value.

The review comes amid a flurry of activity in the packaged food sector in which Nestle is being pushed to change by an activist shareholder, Unilever is selling its margarines business and Reckitt Benckiser is selling its mustard business.

“In line with good corporate governance, the group regularly reviews options to deliver value for all its stakeholders,” the company said in a statement on Thursday. “These reviews are carried out in the ordinary course of business as part of the group’s standard planning cycle and also on ad hoc bases, and may involve external advisors.”

A spokesman for Premier Foods declined to elaborate, but the company’s statement was in response to a Wall Street Journal report that said Premier had hired Credit Suisse to review options that could include the sale of one or more brands, a merger with another food group or an outright sale.

Credit Suisse has been an adviser to the company for several years. A spokeswoman for the bank declined to comment.

Premier said last month it was changing its strategy to give equal focus to revenue growth, cost efficiencies and cash generation. It said on Thursday its board had made no changes to the new strategy.

Separately, Hong Kong-based shareholder Oasis Management, which has a representative on Premier’s board, said it had raised its stake in the company to 8.84 percent. Its plan is to reach 10 percent by June 2018.

Last year, Premier rejected a twice-improved 65 pence-per-share takeover bid from U.S. rival McCormick Foods , garnering criticism from major shareholders and leading to a steep drop in its share price.

The shares closed on Wednesday at 40 pence apiece.

The U.S. suitor’s offer valued Premier’s equity at $774 million at the time, but given the drop in the British currency since then, the same offer would be worth $698 million now. ($1 = 0.7698 pounds)

By Martinne Geller

Source: Reuters

comments closed

Related News

November 27, 2022

Cargill to appoint Brian Sikes as president and CEO

Food & Drink

Cargill will appoint Brian Sikes as its president and chief executive officer on 1 January 2023. The soon-to-be CEO, currently holding the chief operating officer title, has worked at Cargill for 31 years. Dave MacLennan, who has served as Cargill’s CEO since 2013, will assume the role of executive chair of the company’s board of directors.

November 27, 2022

Wellness, self-expression drive the latest trends in colors and flavors

Food & Drink

Comforting colors, feel-good flavors, and unique food and beverage experiences will resonate most with consumers in the new year, according to ADM’s latest Flavor and Color Outlook. ADM anticipates that 2023 will be the year of self-expression, and the company identified four trends that are sure to stand out.

November 27, 2022

Nespresso unveils home-compostable coffee capsules in partnership with Huhtamaki

Food & Drink

Nestlé’s Nespresso brand will pilot home-compostable coffee capsules on the Nespresso Original system in France and Switzerland from spring 2023 before further launches in several other European countries within a year. The paper-based capsules are touted as a breakthrough in packaging technology after three years of R&D.