Premier Foods rejects second bid from US company McCormick - instead invests in marketing drive
Premier Foods has rejected a bid from US food giant McCormick, claiming it has undervalued the UK brand which produces household staples such as Mr Kipling, Oxo, Bisto, Homemade and Batchelor’s.
On Wednesday morning, Premier Foods announced that it has rejected a second bid from McCormick & Co, which produces spices, herbs, and flavourings, according to Reuters.
A bid issued on 12 March was rejected, and, most recently one presented 14 March, sitting at an estimated $700m, was also turned down.
Premier chairman, David Beever, said: "McCormick's proposal significantly undervalues the business.
"(It) fails to recognize the value of Premier's performance to date and prospects for the future, including the strategic plans we have to accelerate growth."
This comes after Premier Foods announced that it is going to boost the marketing spends of its brands from £25m to £36m across its entire portfolio.