Nestle in talks to buy Premier’s Quorn: report

LONDON (BestGrowthStock) – The world’s biggest food group Nestle (NESN.VX: ) is in talks to buy meat-free food range Quorn from debt-laden Premier Foods (PFD.L: ) for around 230 million pounds ($359 million), Sky News reported.

Sky said on Thursday the bid was submitted through Nestle’s ethnic foods venture Osem Group but said, citing people close to Premier, that the bid talks were not exclusive and others remained in contention.

Nestle and Premier Foods both declined to comment on the report.

Premier Foods has, however, previously stated it remains open minded about disposals, provided they deliver shareholder value and reduce debt to earnings ratios.

It said in October it had received approaches for Quorn, while last month it confirmed the receipt of approaches for its East Anglian canning operations.

As of the end of June the firm had net debt of 1.37 billion pounds.

Premier Foods shares were up 5.5 percent at 17.5 pence at 1410 GMT, valuing the business at 419 million pounds.

(Reporting by James Davey, Editing by Mark Potter)

Nestle in talks to buy Premier’s Quorn: report