Premier Foods has announced it has reached an agreement to sell its four Irish brands - Gateaux, Chivers, McDonnells and the Erin licence - to The Boyne Valley Group for €41.4 million (£34.7m).
It comes the week after an announcement that Premier was selling its Brookes Avana business to 2 Sisters Food Group for a cash consideration of £30m.
Premier said the move represents a further step in the Group’s strategy to focus investment behind eight ‘power brands’, which include Hovis and Mr Kipling.
Chivers is Ireland’s third largest ambient dessert brand, while Chivers Jelly is the second largest jam brand on the market, according to Premier. Gateaux manufactures 20 types of traditional cakes. McDonnells manufactures Supernoodles and curry sauce, while Erin is a trademark of Erin Foods Ltd, and Premier Foods produces soups under the licence.
Michael Clarke, chief executive officer, Premier Foods said: “The sale of these Irish Brands will enable us to focus on supporting our Power Brands in line with our overall strategy. Coming hard on the heels of the announcement of the Brookes Avana sale agreement, this underlines our determination to streamline the business to help restore profitable growth quickly.”
Premier Foods Ireland forms part of the Group’s Grocery division and is the fifth largest supplier of ambient groceries to the Irish market.