Premier Foods and Nissin Foods Holdings have officially entered into a relationship agreement, as of today, 22 April.
The partnership between the two companies was first announced in March, when American firm McCormick Foods made an approach to take over Premier Foods, which owns brands such as Bisto gravy, and Mr Kipling cakes
Nissin agreed to acquire a 17.27 per cent share in Premier Foods on 24 March this year, with David Beever, Chairman of Premier, commenting at the time, "We welcome Nissin as a new long-term shareholder in our business.
"By gaining a strategic investor who understands and supports our growth ambitions, we have an exceptional opportunity to deliver shareholder value. Based on the conditional cooperation agreement we announced yesterday, we very much look forward to working with Nissin to develop ways our two businesses can co-operate to drive growth."
Under the terms of the relationship agreement, Nissin will hold the right to appoint a non-executive director to the board of Premier, so long as it has at least 15 per cent of company’s ordinary issued share capital.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Jenny Whelan. To subscribe to ESM: The European Supermarket Magazine, click here.