A major deal has just been announced by one of the largest food suppliers in the UK, with the completion of the sale of its jellies and sweet spreads business to one of America’s largest food wholesalers.
Firm British favorites such as Sun-Pat peanut butter, Hartleys jams and Gale’s honey will now be part of the Hain Celestial group following the news that Premier Foods has finalized the sale of Histon Sweet Spreads Limited.
As part of the business arrangement, Premier Foods will receive shares in Hain Celestial reported to be worth around £30m. The American giant is renowned for the many different products it markets, including natural food brands such as Linda McCartney Meals and DeliGo.
As a result of the sale, which is reported to be worth over £200m in total, shares in Premier Foods have risen almost 12% and are now standing at 102.25p, going some way towards the £330m the company had planned to raise by June 2014.
When the sale was announced in August, CEO, Michael Clarke said that the strategy was a major step in Premier Foods’ long term plan to simplify the business by concentrating on the food service supplier’s best-sellers. These bigger brand names include Bisto, OXO and Hovis bread, as well as a range of Asian foods, including Sharwood’s sauces.
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