Sarson’s Vinegar goes to Japan for £41m
PREMIER Foods is selling its Middleton-based vinegar and sour pickles business to Japanese group Mizkan for £41m.
Premier, which is under pressure from City investors to sell assets to reduce debts, said the deal for the Sarson’s, Haywards and Dufrais brands is expected to complete by the end of July.
In a statement Premier said: “This agreement represents a further step in the Group’s strategy to prioritise investment behind its eight Power Brands and divest selected, non-core businesses.”
Sarson’s and Haywards brands are the leaders in the categories of malt vinegar and pickles in vinegar while Dufrais is the number two brand in speciality vinegar.
Premier said all 90 employees at its Middleton factory, near Manchester, are expected to transfer to the buyer “following an appropriate consultation process”.
Chief executive Michael Clarke said: “”This agreement represents another important step in our strategy to focus on our Power Brands. I’m delighted that we have found a buyer such as Mizkan.
“Our vinegars and sour pickles business and employees will greatly benefit from being part of a global player focused on vinegar and liquid condiments.”
Kazuhide Matazaemon Nakano VIII, chief executive of Mizkan, a privately-owned group of 200 years’ standing added: “”We are excited to acquire two strong and iconic brands that have such a deep heritage in the UK.
“Sarson’s and Haywards are beloved by consumers and we look forward to investing in the brands and adding to their legacy. They fit well with our global portfolio, are an excellent strategic fit and provide a solid foundation for growth in the UK.”
The deal includes the production, distribution, sales and marketing of the Sarson’s, Haywards and Dufrais brands, the associated private label business, the Middleton site and the pickled beetroot and piccalilli lines at Premier’s factory in Bury St Edmunds.
In the year ended December 31 2011, the vinegar and sour pickles business had reported revenues of £34m and ebitda of £6.2m (before selling, general and administrative costs).
The gross assets of the business being sold were £31.7m.
