Premier Foods gets offers for canning ops

17th Nov 2010 07:44

Premier Foods, the Hovis bread, Bisto gravy and Branston pickle group, has received approaches for its East Anglian canning operations, which could lead to a sale of the unit.The company said back in August that it was "open minded" about disposals as long as they deliver shareholder value and speed up the reduction of average net debt/EBITDA.Although it warned there was no guarantee a deal will be done, it is desperately keen to offload businesses for the right money.Last month, the group confirmed reports that offers had been made for its meat free business that includes Quorn. It's believed the sale could bring in as much has £250m, about half the amount Premier wants in order to make its £1.4bn debt mountain more manageable. Switzerland's Nestlé, Unilever and French giant Danone are being touted as possible bidders for the business Premier bought five years ago for £172m. Others think private equity buyers could also be circling the Mr Kipling cakes and Bisto Gravy firm.