Tomkins said yesterday it was selling its European food manufacturing business, including Ranks Hovis McDougall for £1.139 billion sterling (€1.833 billion).

Total proceeds from the sale to private equity fund managers Doughty Hanson and Co will be £1.227 billion, including about £88.3 million from the sale, completed a week ago, of Red Wing in the United States.

In a statement issued in London, Tomkins said it was selling its food operations to concentrate on its engineering business. It added that it intends to return up to £700 million of the proceeds of the sale to shareholders via a share buy back programme, which may include convertible preference shares.