The company behind Hovis, Mr Kipling and Bisto has announced it will not be selling the business but intends to look abroad at new partnerships.
On Tuesday 1st October Premier Foods put to rest speculation that the company was still in trouble after years spent repaying debts incurred before the recession.
Instead of the business facing closure, Premier’s prospects have begun to vastly improve as shares in the business have doubled in six months to 152 pence. This jump can be partially credited to the company’s increased focus on improving the sales performance of best selling brands Ambrosia and Bisto, as well as speculation in the media that Grupo Bimbo, a Mexican bakery firm was interested in partnering with Hovis.
The boost in share price, cost savings, new products and focus on best-sellers is expected to reduce Premier Food’s year-end net debt to between Â£840m and Â£860m.
Gavin Darby, who joined Premier Foods in January stated: ‘We’ve done the hard yards on Hovis, we’ve taken the pain of the restructuring, taking 1,000 jobs out of the business, taking significant restructuring costs’.
There are a number of companies like Premier in some big countries that want to co-operate, so there may be opportunities to either sell their brands or them distribute ours. That’s the kind of thing we are working on but it’s early days.
Expanding your business
If like Premier Foods you are in a position to expand your business, but are unsure of the next step to take in building a suitable business partnership, you might consider speaking to the specialist partnership law solicitors Ralli.
Ralli’s solicitors are experienced in all areas of partnership law and can advise you in all aspects of creating a business partnership that suits you, and your pre-existing partnership. Our solicitors will help you protect your business and your personal assets by constructing a secure partnership agreement, that ensures there are legal provisions in place for every eventuality so you can focus on making your business a success.
For more information please contact the team at Ralli on 0161 832 6131, or alternatively complete our contact form.