Premier Foods sells Irish brands to Boyne Valley

BOYNE VALLEY Group has bought Premier Foods’s Irish brands in a deal worth more than €41 million.

The brands, which include McDonnells, Chivers, Erin and Gateaux, recorded turnover of €29.5 million and earnings before interest, depreciation, tax and amortisation of €10.0 million in the year ended December 31st 2010. The group had assets of €39.2 million.

The deal comes as Premier Foods seeks to focus investment behind eight of its brands, including Ambrosia, Batchelor’s, Hovis and Mr Kipling.

As part of this strategy, the company is also selling its chilled food division, Brookes Avana. The sale to the 2 Sisters Food Group was announced on December 8th.

Premier Foods, Britain’s largest food group, is attempting to cut its debt to avoid breaching its agreements with banks.

“The sale of these Irish brands will enable us to focus on supporting our power brands in line with our overall strategy,” Premier Foods chief executive Michael Clarke said.

“Coming hard on the heels of the announcement of the Brookes Avana sale agreement, this underlines our determination to streamline the business to help restore profitable growth quickly.”

Boyne Valley Group, which is a privately owned business, said additional investment could grow the brands further.