Premier Foods to acquire rival food producer
Herts-based Premier Foods has reached an agreement to acquire rival food producer RHM through a scheme of arrangement, making it, if successful, the largest in the UK. The enlarged organisation would have pro-forma sales that will total £2.6bn, with 93 per cent coming from the UK, and will hold a wide range of iconic UK brands, the top 10 of which will have retail sales of £1.1bn.
Under the terms of the offer, RHM shareholders would receive one Premier share and 83.2 pence in cash for each RHM share, valuing the company at £1.2bn. Shares in Premier were up 4 per cent to 281p, following the news.