UK food manufacturer Premier Foods is hoping to raise £300m through a listing on the London Stock Exchange. The company, owned by Hicks, Muse, Tate & Furst (HMTF), has set an indicative price range of 230 pence to 260 pence per share, valuing the company’s equity at £607m at the midpoint of the offer price range.
HMTF acquired the business, which was originally named Hillsdown Holdings in August 1999 for around £165m. The business also owned an upholstered furniture manufacturing business and a poultry business. These businesses were sold to other entities managed by HMTF funds and Premier Foods became a stand-alone food business. Following a successful float, HMTF could raise as much as £170m from selling its stake down to 50% making a return of around 2.5x its original investment, according to sources.
HMTF has agreed to enter into a lock-up period of 180 days post admission.
Premier’s branded products include Ambrosia custard and milk puddings, Branston pickles, Typhoo tea and Sun-Pat peanut butter.