Sale of Premier Foods bread section 'still a possibility'

Thu, 25 Jul 2013 | BUSINESS SALE

A sale of Premier Foods' bread companies is still on the cards, according to a leading analyst.

Martin Deboo, an analyst with Investec, told Bakery Info that he believes Premier would be "happy to sell their Hovis bread business for the right price". However, he questioned who the potential buyer would be.

"The UK regulators would be unlikely to allow consolidation between Hovis, Warburton's and Allied Bakeries. That leaves Private Equity, who would probably be uncomfortable with the margin volatility, or perhaps an overseas buyer like Grupo Bimbo of Mexico."

The news comes as Premier Foods has reported a 50 per cent jump in underlying trading profit for the first half of the year. The company is now predicting cash flow of between £50 million and £70 million for 2013, a notable increase on earlier predictions of between £40 million and £60 million. A £20 million cost-saving programme is thought to be to thank for the improvement.

Chief executive of the group, Gavin Darby, said that the results are "very encouraging", particularly in such a competitive trading environment. He added: "Looking further forward, we will continue to drive profitable top-line growth by focusing on growing our categories supported by ongoing cost savings from reducing complexity. At the right time, we will address our capital structure – from a position of growing strength given the delivery of our turnaround plan and the performance of our Power Brands."


Share this article



Latest Businesses for Sale

Digital Marketing Agency in Web & Mobile App Design & Development
West Midlands, UK

Designs and develops websites and business critical web / mobile applications. Employs 19 talented and experienced in-house designers and developers. Operates from freehold premises. Our client is offering the business for sale to facilitate growth....

Asking Price: Offers Invited
Turnover: £1,000,000

FREEHOLD


Provider of Home Care
Yorkshire and the Humber, UK

Offers a variety of services including domestic assistance, medication administration, companionship and palliative care, as part of a 24/7 service. Care Quality Commission with a rating of ‘Good’ in all domains. Contractually provides its services t...

Asking Price: Offers Invited
Turnover: £1,300,000

LEASEHOLD


Fast Food Chain Restaurant
UK Wide

Currently operates from a number of restaurants, all of which are situated in prominent trading locations and benefit from high levels of footfall. Long-standing brand with a multitude of excellent reviews online. All dishes are prepared in store by...

Asking Price: Offers Invited
Turnover: £6,100,000

FREEHOLD



View more businesses for sale

News Search

Latest News

 
10
 
Dec
 

MBO at Derby rail sector recruiter | MBO/MBI

There has been a seven-figure management buyout (MBO) at Der...

 
09
 
Dec
 

Scunthorpe construction group call in administrators | ADMINISTRATION

Scunthorpe-based Clugston Group and Clugston Construction ha...

 
06
 
Dec
 

KPMG agrees to sell pensions arm | DIVISION SALE

Professional services network KPMG has announced that it has...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
10
 
Dec
 

MBO at Derby rail sector recruiter | MBO/MBI

There has been a seven-figure management buyout (MBO) at Der...

 
09
 
Dec
 

Scunthorpe construction group call in administrators | ADMINISTRATION

Scunthorpe-based Clugston Group and Clugston Construction ha...

 
06
 
Dec
 

KPMG agrees to sell pensions arm | DIVISION SALE

Professional services network KPMG has announced that it has...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources