Premier Foods Sells Meat Free Unit to Private Equity for GBP205M

Marlow Foods is the UK market leader in the meat alternative segment selling chilled and frozen products under the Quorn and Cauldron brands. For the year to 31 December 2010, the business is expected to report sales of £128.8 million and EBITDA of £19.3 million.

1/25/2011 --- Intermediate Capital Group (ICG), the FTSE 250 listed investment firm and asset manager with €12 billion under management, together with Exponent Private Equity has agreed to finance the acquisition of Premier Foods’ meat free division (“Marlow Foods”) for £205 million.

ICG is providing junior debt and equity financing of £80 million, from its balance sheet and third party funds.

Marlow Foods is the UK market leader in the meat alternative segment selling chilled and frozen products under the Quorn and Cauldron brands. For the year to 31 December 2010, the business is expected to report sales of £128.8 million and EBITDA of £19.3 million. Quorn operates on a stand-alone basis from the rest of Premier Foods with three manufacturing sites in the United Kingdom employing approximately 595 people. The management team will continue to be led by CEO Kevin Brennan, supported by Clive Sharpe as Chairman.

The acquisition, which is subject to bank and shareholder approval, is expected to complete
in early March 2011.

Prmier Foods’ sale of the Meat-free business will allow the group to focus more resources and management time on the Grocery and Hovis businesses and brands and will reduce the Group's debt, facilitate diversification of funding sources and reduce materially the amount of time required to reach its target average debt to EBITDA ratio.