Premier Foods plc
02 July 2007
2 July 2007
Premier Foods PLC
Completion of UK Manufacturing Review
Premier Foods plc ('Premier') announces that it has completed the review of its
UK manufacturing facilities following the completion of its acquisition of RHM
on 16 March 2007. The review, which covered Premier's ambient factories, the
RHM Culinary Brands factories and the RHM Customer Partnership's Ledbury
Preserves factory, focused on optimising efficiency across our manufacturing
network and providing the capacity to support the continued growth of our
brands. Premier confirms that the annual cost synergies targeted from both the
integration of Campbell's of £28m and RHM of £85m remain on track.
The company is commencing consultation on proposals to close 6 of the 11 sites
covered by the review and invest significantly in the other 5 sites.
Proposals include:
• Focusing dry food production on three major sites in Worksop (Notts),
Knighton (Staffs) and Ashford (Kent);
• Focusing preserves and spreads production in Histon (Cambs);
• Moving production of chutneys, pastes and cooking sauces to Bury St
Edmunds (Suffolk) and foodservice desserts to Knighton (Staffs); and
• Closing 6 factories in Bristol, Droylsden (Manchester), Ledbury
(Herefordshire), Middlewich (Cheshire), Reading (Berks), and Wythenshawe
(Manchester) by early 2009.
Consultation on these proposals will begin immediately with affected employees.
Robert Schofield, Chief Executive of Premier, said:
'Our priority continues to be growing our business and our brands and to do this
we need to remain competitive in the market place. These proposals will enable
us to enhance our efficiency whilst giving us the capability to drive our
branded sales growth. Our proposals include significant investment in 5 of our
sites whilst 6 sites will close. We appreciate the impact our proposals will
have on employees at those sites and we will work with them to explore
opportunities for redeployment within the group or outside of the company.'
Premier will release its pre-close period trading update for the 6 months to 30
June 2007 together with RHM's results for 2006 restated in line with Premier's
accounting policies and reporting calendar at 7am on 9 July 2007.
Premier Foods plc Tel: 01727 815 850
Paul Thomas, Finance Director
Robert Lawson, Director of Mergers & Acquisitions and Investor Relations
Gwyn Tyley, Director of Investor Relations
Citigate Dewe Rogerson Tel: 020 7638 9571
Michael Berkeley
Justin Griffiths
Nicola Smith
This information is provided by RNS
The company news service from the London Stock Exchange
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