Daily Mirror (Northern Ireland)
Desserting the debt...
Ambrosia sale to cut borrowings
PREMIER Foods wants to flog much-loved custard brand Ambrosia to slash its debts.
The company yesterday confirmed it was in talks with a number of possible buyers for the Devonbased business, also known for its rice pudding and other desserts.
Boss Gavin Darby said: “It is worth more as a brand to another company than it is to Premier.”
He said the sale would give the company “firepower” to invest in its other products.
It will also help reduce Premier’s debts, which stood at just over £500million at the end of September.
Premier, whose other kitchen staples include Mr Kipling cakes and Oxo stock cubes, bought Ambrosia in 2003.
The 100-year-old business employs around 300 people and is Premier’s fifth biggest brand, with retail sales of £130m a year.
The Ambrosia deal was part of a buying spree by previous management that lumbered the business with a mountain of debt.
The possible sale emerged as it was announced Darby was stepping down after six years in charge. His departure on January 31 will come six months after he narrowly survived a shareholder rebellion against his re-election.
Activist investor Oasis Management had called for him to go, having criticised his plans when he fought-off a takeover from US firm Mccormick in 2016.
Premier’s share price has almost halved since Darby took over but he has also cut debts from £1billion.
Premier’s half-year results announced yesterday showed that the firm’s pre-tax losses widened from £1.2m to £2.2m but revenues rose 1.3% to £358m.