Recent stories from Adbrands Weekly Update:
Adbrands Weekly Update 14th Apr 2016: US spicemaker McCormick & Co abandoned attempts to acquire Premier Foods of the UK, owner of Mr Kipling cakes and Batchelors soups and noodles, citing the unreasonable expectations on price of the target company's board. McCormick had raised its offer to 65p a share, more than twice Premier's value before the offer was received, but the British company declined it, to the frustration of its shareholders. The board will have to work hard to justify their stubbornness. Following McCormick's latest announcement, Premier's share price plunged once more, though it remains well above the levels at which it was trading a month ago.
Adbrands Weekly Update 31st Mar 2016: Spice specialist McCormick & Co raised its offer for UK company Premier Foods from 60p to 65p per share, equivalent to a market cap of £537m, around twice where Premier was trading before any offer was received. Including Premier's substantial debt and pension liabilities, total value of the offer is around £1.5bn. Yet Premier still says the deal undervalues its prospects. It will however agree to meet with McCormick for further discussions. It has already rejected two earlier offers in favour of a strategic alliance with Nissin Foods of Japan, which increased its holding in the company to almost 20%.
Adbrands Weekly Update 24th Mar 2016: A battle may be in the offing for British group Premier Foods, owner of Mr Kipling cakes, Oxo stock and Batchelors side-dishes. It revealed that it has rejected two bids from US company McCormick & Co, best-known for its spices and condiments. It said the bids were "highly conditional" but the most recent valued the business at close to £500m. Though that offer is almost twice Premier's pre-announcement market cap, the company said the offer "significantly undervalues" its value. Instead, Premier unveiled a strategic partnership with Nissin Foods of Japan to expand reciprocal distribution of their respective products. That arrangement was sealed with the purchase by Nissin of a 17% stake in Premier. Under stock exchange rules, McCormick now has approximately three weeks to either make a firm offer or walk away.
Adbrands Weekly Update 3rd Feb 2014: Struggling Premier Foods agreed to sell a controlling 51% stake in its iconic but troubled
Hovis bakery business to US-based investor Gores Group for £30m. The latter has agreed to inject £200m into the business to boost efficiency. The business will continue to be led by current bakery managing director Bob Spooner.
Adbrands Weekly Update 21st Nov 2013:
Premier Foods of the UK picked Carat to handle local media, following resignation of the account by Starcom MediaVest.