Menu
04/12/2006
Premier Foods to buy RHM for £1.2bn
Premier Foods the owner of leading food brands including Branston and Ambrosia Chivers has reached a £1.2 billion agreement to take over RHM.
The acquisition of RHM, with top brands Hovis, Bisto, and Sharwoods, will make Premier the largest food producer in the UK. RHM shares rose significantly on the announcement of the takeover deal.
Premier said it believed the deal would deliver "substantial cost savings to enhance efficiency and competitiveness" with savings in the region of £85 million – no announcement has yet been made on jobs losses.
Premier Foods Chief Executive Robert Schofield said: "RHM is a business with strong brands and talented people. This acquisition brings Premier more great British brands with leading category positions which fit naturally in our portfolio. As we've done before, we intend to drive growth through innovation and investment whilst maintaining a tight control on costs.
This acquisition transforms our scale and we believe it will enable us to be a better partner with our retail customers."
Commenting on today's announcement, Jan du Plessis, Chairman of RHM, said: "The Board of RHM has long appreciated the commercial and financial logic of a combination with Premier to create the leading UK-focused food manufacturer.
This transaction achieves that objective and delivers substantial value to our shareholders through both the immediate offer premium and participation in the enhanced growth prospects of the enlarged Premier under its proven management team."
RHM employs 15,000 people in the UK and France. It had faced tough trading conditions and was engaged in a cost reduction programme. In its last trading statement RHM said that despite increasing advertising and wheat costs the company was on track.
Floated on the stock market two years ago, Premier Foods has recently acquired Oxo and Campbell.
(SP/KMcA)
The acquisition of RHM, with top brands Hovis, Bisto, and Sharwoods, will make Premier the largest food producer in the UK. RHM shares rose significantly on the announcement of the takeover deal.
Premier said it believed the deal would deliver "substantial cost savings to enhance efficiency and competitiveness" with savings in the region of £85 million – no announcement has yet been made on jobs losses.
Premier Foods Chief Executive Robert Schofield said: "RHM is a business with strong brands and talented people. This acquisition brings Premier more great British brands with leading category positions which fit naturally in our portfolio. As we've done before, we intend to drive growth through innovation and investment whilst maintaining a tight control on costs.
This acquisition transforms our scale and we believe it will enable us to be a better partner with our retail customers."
Commenting on today's announcement, Jan du Plessis, Chairman of RHM, said: "The Board of RHM has long appreciated the commercial and financial logic of a combination with Premier to create the leading UK-focused food manufacturer.
This transaction achieves that objective and delivers substantial value to our shareholders through both the immediate offer premium and participation in the enhanced growth prospects of the enlarged Premier under its proven management team."
RHM employs 15,000 people in the UK and France. It had faced tough trading conditions and was engaged in a cost reduction programme. In its last trading statement RHM said that despite increasing advertising and wheat costs the company was on track.
Floated on the stock market two years ago, Premier Foods has recently acquired Oxo and Campbell.
(SP/KMcA)
Related UK National News Stories
Click here for the latest headlines.
17 January 2012
Premier Foods Predicts 5% Job Losses
A major UK food supplier has announced it is to lay off around 600 workers as it prepares to face a tough 2012. Publishing its growth plan for the coming year, Premier Foods said it would be doubling its savings projections, attempting to cut £40 million of spend by 2013 by creating a "stronger and more efficient business".
Premier Foods Predicts 5% Job Losses
A major UK food supplier has announced it is to lay off around 600 workers as it prepares to face a tough 2012. Publishing its growth plan for the coming year, Premier Foods said it would be doubling its savings projections, attempting to cut £40 million of spend by 2013 by creating a "stronger and more efficient business".
30 April 2013
Whitbread Announce UK Jobs Boost
Whitbread, the hotel and restaurant group, has said it plans to create 12,000 jobs in the UK over the next five years. According to Sky News, the group outlined its plans for expansion as it continues to see its profit increase. The group owns both Premier Inn and Costa Coffee and has created 3,000 UK jobs over the last year alone.
Whitbread Announce UK Jobs Boost
Whitbread, the hotel and restaurant group, has said it plans to create 12,000 jobs in the UK over the next five years. According to Sky News, the group outlined its plans for expansion as it continues to see its profit increase. The group owns both Premier Inn and Costa Coffee and has created 3,000 UK jobs over the last year alone.
19 January 2010
American Firm Buys Cadbury
Directors at UK chocolate producer Cadbury have approved a £11.5bn ($18.9bn) buy-out deal by American food firm Kraft. Kraft said the deal would create a "global confectionery leader". However, fears have been raised over jobs at Cadbury's Bournville and Somerdale manufacturing sites.
American Firm Buys Cadbury
Directors at UK chocolate producer Cadbury have approved a £11.5bn ($18.9bn) buy-out deal by American food firm Kraft. Kraft said the deal would create a "global confectionery leader". However, fears have been raised over jobs at Cadbury's Bournville and Somerdale manufacturing sites.
05 December 2014
FSB Slams Premier Foods' Unfair 'Investment Payment'
The Federation of Small Businesses (FSB) has slammed Premier Foods' unfair payment practices. In a recent letter to suppliers, Premier Foods, the UK's largest food producer, requested a compulsory 'investment payment' to be made by any company wishing to stay on its approved supplier list.
FSB Slams Premier Foods' Unfair 'Investment Payment'
The Federation of Small Businesses (FSB) has slammed Premier Foods' unfair payment practices. In a recent letter to suppliers, Premier Foods, the UK's largest food producer, requested a compulsory 'investment payment' to be made by any company wishing to stay on its approved supplier list.
20 November 2012
Premier Foods To Shut Down Two Bakery Sites
Premier Foods has announced it will be closing two bakery sites which will result in axing 900 jobs. The firm, which makes Hovis, said its sites in Greenford and Birmingham will be closing some time next year, in addition to the previously announced closure of the Eastleigh bakery.
Premier Foods To Shut Down Two Bakery Sites
Premier Foods has announced it will be closing two bakery sites which will result in axing 900 jobs. The firm, which makes Hovis, said its sites in Greenford and Birmingham will be closing some time next year, in addition to the previously announced closure of the Eastleigh bakery.
-
Northern Ireland WeatherToday:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
