UK-based Premier Foods, whose brands include Bisto gravy, Mr Kipling cakes and Loyd Grossman cooking sauces, has rejected a takeover bid from US food giant McCormick.
In a statement, Premier Foods said that it received a 'an unsolicited, non-binding and highly conditional approach' from McCormick on 12 February for its entire share capital, at a price of 52 pence per share. This was followed up on 14 March with a bid for the business at 60 pence per share.
Premier Foods said that McCormick's bid 'significantly undervalues the Company and its prospects', and was rejected by the board.
"McCormick's proposal represents an attempt to capture the upside value embedded in Premier's business that rightfully belongs to Premier's shareholders," said David Beever, Premier Foods chairman. "The proposal fails to recognise the value of Premier's performance to date and prospects for the future, including the strategic plans we have to accelerate growth.
"McCormick's proposal significantly undervalues the business and the Board has unanimously decided to reject it."
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.