Premier Foods has sold its Sarson’s vinegar brand to supplier Mizkan.
The Sarson’s and Dufrais vinegar brands, as well as pickle brand Haywards, raised a combined £41m for Premier. The deal is expected to complete by the end of next month.
The agreement marks the latest step in Premier’s strategy to focus investment on its eight Power Brands and divest non-core businesses. In the 2011, its vinegar and sour pickles operation had reported revenues of £34m and EBITDA of £6.2m.
The family-run Mizkan business produces bulk vinegar and a range of Mizkan-branded retail products including rice vinegars and sushi seasoning.
“Our vinegars and sour pickles business and employees will greatly benefit from being part of a global player focused on vinegar and liquid condiments,” said Premier chief executive Michael Clarke.
Describing Sarson’s and Haywards as “two strong and iconic brands that have a deep heritage in the UK”, Mizkan boss Kazuhide Matazaemon Nakano said they were an excellent strategic fit and provided a solid foundation for the company’s growth in the UK.
Sarson’s, which Premier claims is served on nine out 10 portions of fish & chips sold in the UK, includes malt, distilled, balsamic and pickling strength vinegars.
The Haywards range includes pickled onions, silverskin onions, beetroot, red cabbage, piccalilli and gherkins, while speciality vinegar range Dufrais comprises cabernet sauvignon, sauvignon blanc and vintage cider flavours.
All three brands were predominantly manufactured at Premier’s Middleton factory near Manchester and all employees at the site are expected to transfer to Mizkan.
Premier will continue to manufacture Haywards pickled beetroot and piccalilli for Mizkan at its Bury St Edmunds site for up to 12 months.
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