UK Manufacturing Proposals
Premier Foods plc
19 January 2007
PREMIER FOODS PLC ('PREMIER')
Proposals to restructure UK manufacturing facilities and
acquisition of Chivers Ireland
Premier, one of the leading suppliers of grocery products in the UK, has
announced consultation on the proposed closure of its factories in King's Lynn
(Norfolk) and Ashford (Kent) and the expansion of three other UK food production
sites. The proposal is for the King's Lynn factory to close by December 2007
and the Ashford factory to close by May 2008.
Plans are expected to be finalised early in the Spring, with implementation
taking place throughout 2007 and beyond. The savings and costs of the
restructuring are in line with those anticipated at the time of the acquisition
of Campbell's UK. Premier's other manufacturing sites will continue to operate
as usual.
In addition, Premier announces that it has agreed to acquire Chivers Ireland
Limited from its management. Chivers is a leading supplier of preserves to
Ireland's retail grocery and foodservice markets and currently also operates as
one of Premier's key distributors in Ireland. This acquisition will strengthen
Premier's position as a major player in the Irish food market. The gross assets
of the business as at 31 December 2005 were €24.5m.
Robert Schofield, Premier Foods plc CEO, commented:
'These restructuring proposals are very much about maximising our
competitiveness in order to grow our business and our brands. We are committed
to enhancing our manufacturing efficiency so that we can remain competitive and
to providing substantial marketing investment to support our brands.
'Closing factories is not a decision we take lightly and we appreciate greatly
the commitment of our Ashford and King's Lynn factory employees. We are
determined to provide support for those affected and remain hopeful that in the
event of us proceeding as proposed, many of those employees will remain in the
business and transfer to one of the new opportunities being created.'
Enquiries:
Paul Thomas, Finance Director
Robert Lawson, Director of Mergers & Acquisitions and Investor Relations
Premier Foods plc Tel: 01727 815 850
Michael Berkeley
Justin Griffiths
Citigate Dewe Rogerson Tel: 020 7638 9571
Notes to Editors
Premier Foods plc is a leading UK manufacturer and marketer of grocery products.
Premier manufactures and markets grocery products for the retail grocery and
out of home channels in two principal product segments:
• convenience foods, pickles, sauces and meat free; and
• spreads, desserts and beverages.
Premier also operates a potato packing and marketing business in the United
Kingdom, supplying the retail grocery, out of home and food manufacturing
channels.
Premier's branded products include Batchelor's soups, noodles, rice, pasta and
vegetables, Quorn meat alternatives, Ambrosia custard and milk puddings, Oxo
stocks and gravies, Bird's and Angel Delight desserts, Branston pickles, baked
beans and pasta, Hartley's preserves and desserts, Homepride cooking sauces,
Gale's honey and lemon curd, Crosse & Blackwell convenience foods, Sun-Pat
peanut butter, Sarsons vinegar, Fray Bentos meat pies, Haywards pickles, Smash
instant mashed potato, Marvel powdered milk creamer and Waistline salad
dressings, soups and cooking sauces. In addition, the Company produces Loyd
Grossman cooking sauces and soups under licence. Premier also produces a range
of retailer brand products, principally for the major multiple retailers.
This information is provided by RNS
The company news service from the London Stock Exchange