The great sell-off at Premier Foods kept on yesterday as the Hovis maker collected in the tune of one hundred and eighty two million pounds ditching its Crosse & Blackwell canned business.
Robert Schofield, the boss of the firm announced plans to give up the tinned business, which included Fray Bentos, Farrows and Smedley's, bringing Premier's debts below one billion pounds for the first time in five years.
The agreement was done with Princes, part of Japan's Mitsubishi, which managed to convince Premier to spend five million pounds for upgrading one of its canning facilities.
Schofield had stated that by selling the business the company has simplified its operations and thus got allowed to concentrate its efforts on the current selection great British brands.
Yesterday, Premier Foods stated that it had sold off its canned grocery division including the brands Crosse & Blackwell and Fray Bentos to its rival firm, Princes.
The deal worth one hundred and eighty two million pounds is meant for reducing Premier’s debt and is the second disposal in less than a month after the company sold its Quorn business for two hundred and five million pounds.
Premier further said that it also sold the business because it wanted to concentrate primarily on branded products, such as Bisto gravy and Mr Kipling cakes.
The company yesterday had scrapped suggestions that it had appointed advisers to help sell its Hovis business.
The canned grocery division of Premier has two manufacturing sites in Lincolnshire and Cambridge, and employs one thousand six hundred people.
The company will be submitting its results next week with analysts’ expectations that annual earnings will be around three hundred million pounds.
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