Premier Foods 'open-minded' as approaches made for Quorn brand
By John Reynolds, marketingmagazine.co.uk, Monday, 04 October 2010 01:11PM
Premier Foods, the owner of Hovis, Branston and Mr Kipling, is to offload its meat-free division which includes its Quorn brand.
The move comes as the company looks for ways of alleviating its £1.4bn debt burden.
Chief executive Robert Schofield has promised to reduce its debt pile by between £400m and £500m.
A disposal of the Quorn business would, according to reports, net Premier Foods between £200m and £250m.
The Quorn brand is non-core to Premier Foods, and its sale would likely appease investor concern about the company’s debt burden.
While no potential suitors have disclosed their intentions of buying the business, possible buyers are likely to include Unilever and Danone.
Premier Foods reiterated its commitment to pushing Quorn – which works with creative agency McCann Erickson – in overseas markets, as part of its financial update to the market in February this year.
In a statement, Premier Foods said: "The board remains open-minded about disposals, provided they deliver shareholder value and accelerate the reduction of average net debt. As part of this, the group confirms it has received approaches that may or may not lead to a sale of its meat-free business, including Quorn."
This article was first published on marketingmagazine.co.uk
- Affiliates Executive - No. 1 Agency! GoodEgg Digital Circa £25k + Exceptional Benefits, Central London
- Digital Display Manager - Leading Agency GoodEgg Digital £Neg + Great Benefits, South East England / London (Central), London (Greater)
- Senior Marketing Director - 9-12 month FTC Comedy Central £competitive, Camden, London (Greater)
- Community Manager | £26-30K, depending on experience. Dynamic New Alliances Up to 30K + Benefits, Central London
- Retention Manager Ball & Hoolahan £40,000 per annum, London (Central), London (Greater)
- Philips launches campaign for app-controlled lightbulbs
- Sorrell warns of Scotland becoming an 'outlier' and the UK 'diminished' by a Yes vote
- Publicis boss Maurice Lévy to step down in 2017 amid board shake-up
- Sometimes collaboration, not innovation, can be the key to winning campaigns
- Virgin Trains spends £8 million on advertising to refocus on its brand
- WPP challenges Govt review