With news that Premier Foods is open to offers for Quorn (its meat free brand) as part of a debt reduction strategy, it poses the question, "Are UK's Food Manufacturers set to clean out their cupboards?"
Plimsoll has identified 153 of the UK's leading food manufacturers that need to to take urgent and radical steps need to be taken. With so many manufacturers in difficulty, there is a growing sense that we will see some famous brands changing hands as companies try to get debts back under control.
How many of these brands will be lost to overseas suitors is difficult to say but the recent flirtations between United Biscuits and Bright Foods seems to indicate a serious appetite for western brands among eastern groups. Plimsoll has also identified 93 other UK companies that are vulnerable to takeover. In many cases, whole companies will be acquired rather than just individual brands.
The latest Plimsoll Analysis has analysed the 500 largest Food Manufacturers in Britain and rated each one on its performance, likelihood of being taken over and what its future prospects are.
Click here to find out which companies could be bought out, those set to fail and those powering ahead
Showing posts with label united biscuits. Show all posts
Showing posts with label united biscuits. Show all posts
Monday, 4 October 2010
Wednesday, 29 September 2010
United Biscuits – Are Bright Foods set to pay too much for their Jaffa Cakes?
United Biscuits – Are Bright Foods set to pay too much for their Jaffa Cakes?
With Bright Foods, the Chinese food giant in talks to acquire United Biscuits we have to ask one pertinent question - Is United really worth the reported £2bn?
According to our calculations, the company is probably worth closer to £1.5bn. After its assets and liabilities have been taken into account its equity value is probably closer to £1.2bn. So, while United has increased in value in each of the last 2 years, the current owners, it is worth considerably less than the rumoured price – the current owners are getting a good deal.
Clearly, Bright Foods are after United for its portfolio of brands rather than for short term financial gain and they are prepared to pay a premium for it. Hopefully, the jobs and investment will stay in the UK and not be moved overseas like in other takeovers of this type. Will new owners at United Biscuits do the same thing that Kraft did at Cadburys?
Click here to see which of the UK’s Food Manufacturers is likely to be the next big takeover story
With Bright Foods, the Chinese food giant in talks to acquire United Biscuits we have to ask one pertinent question - Is United really worth the reported £2bn?
According to our calculations, the company is probably worth closer to £1.5bn. After its assets and liabilities have been taken into account its equity value is probably closer to £1.2bn. So, while United has increased in value in each of the last 2 years, the current owners, it is worth considerably less than the rumoured price – the current owners are getting a good deal.
Clearly, Bright Foods are after United for its portfolio of brands rather than for short term financial gain and they are prepared to pay a premium for it. Hopefully, the jobs and investment will stay in the UK and not be moved overseas like in other takeovers of this type. Will new owners at United Biscuits do the same thing that Kraft did at Cadburys?
Click here to see which of the UK’s Food Manufacturers is likely to be the next big takeover story
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