ST. ALBANS, U.K. — A day after the board of directors of Premier Foods P.L.C. rejected an approach by Sparks, Md.-based McCormick & Co., Inc., the board agreed to a smaller deal with Tokyo-based Nissin Foods Holdings Co., Ltd.
Nissin on March 24 unconditionally agreed to acquire a 17.27% shareholding in Premier from an existing shareholder.
|David Beever, chairman of Premier Foods|
“We welcome Nissin as a new long-term shareholder in our business,” said David Beever, chairman of Premier Foods. “By gaining a strategic investor who understands and supports our growth ambitions, we have an exceptional opportunity to deliver shareholder value. Based on the conditional cooperation agreement we announced yesterday, we very much look forward to working with Nissin to develop ways our two businesses can co-operate to drive growth.”
Premier Foods on March 23 announced it had agreed to enter into a co-operation agreement with Nissin Foods. The partnership has the potential for “significant long-term value creation for both organizations,” Premier said.
Pointing to ways the two companies may benefit from the partnership, Premier said it will gain access to Nissin’s innovative products and formats to distribute in the U.K. market under both company’s brands, as well as enable Premier to benefit from Nissin’s international scale to accelerate the distribution of Premier’s products in key international markets. Additionally, gaining access to Nissin’s significant intellectual property, innovation and technical know-how is expected to lead to the development of new products.Nissin has annual revenues of approximately $3.8 billion and operating profit of around $216 million. The company operates in 19 different countries, spanning Asia Pacific, the Americas, Europe, Middle East and Africa, and is a global leader in instant noodles, holding the No. 1 or No. 2 positions in key markets, including Japan, the United States and Brazil. Nissin also has a growing presence in chilled and frozen foods, cereal-based confectionery and yogurt beverages in Japan. The company’s presence in Europe includes Hungary, Germany and Spain, with brands such as Cup Noodles, Soba and Top Ramen.