Premier Foods has sold its sweet pickles and table sauces business to Mizkan for £92.5m.

The disposal, which includes Branston pickle, ketchup, relish, salad cream and mayonnaise and the company’s Bury St Edmunds factory, is expected to conclude early next year, subject to approval by Premier’s shareholders and banking syndicate.

The sale smashes Premier Foods’ disposal targets. Premier had undertaken to raise £330m from disposals by June 2014, but this deal means it has raised £370m since March 2012. The combined sales represent a 30% reduction the company’s net debt, which Premier reported was £1.27bn on 30 June.

“I’m delighted to have exceeded our disposal target 20 months early while at the same time delivering three successive quarters of sales growth and taking £40m of overhead costs out of the business this year. We can now focus our attention on driving further momentum in our grocery business and unlocking value in bread,” said CEO Michael Clarke.

Sales of Premier’s sweet pickles and table sauces business were £66m in the year to 31 December 2011, of which 54% were branded sales. Trading profit was £8.5m.

The sale is the second of Premier’s businesses to be picked up by Mizkan. In July it bought Premier’s vinegar and sour pickles business for £41m.

“Branston Sweet Pickle is an iconic brand that has established a market leading position. The Branston brand is also an excellent strategic fit with our global portfolio and adds to our solid foundation for growth in the UK,” said Mizkan CEO Kazuhide Matazaemon Nakano VIII.

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