Northern chief quits following merger deal

Mr Barden, 47, will not see through the transition to Essenta Foods, instead becoming UK chief executive of private equity-owned food service group Brakes.

Essenta, which will be the UK market leader in chilled food, will be headed by Greencore's chief executive Patrick Coveney.

Mr Barden said he was proud of what he and his team achieved in four years as chief executive of the Leeds-based business.

"It has been a privilege to lead Northern Foods and our employees over the past four years," he said.

"We've ticked most of the boxes. When I came in if you had said 'This is the outcome which you have achieved,' everyone would have said, 'Thank you very much, this is fantastic'."

Mr Barden was appointed chief executive of Northern in February 2007.

He starts at Brakes in the new year. It supplies restaurants and caterers across the country.

Mr Barden said even with the action Northern took on shedding unprofitable contracts and closing factories – which has cost Northern about 100m in sales – revenues grew under his tenure.

Turnover increased from 888.5m to 977m, while operating profits last hit 54.6m, compared with 45.7m in 2007.

"That shows that there's a very strong business in there trying to get out," he said. "There are now 18 sites and every one has a purpose."

However, even with the gains from the planned merger, the company's share price has suffered badly in recent years. It was around 123p at the time of his appointment but closed yesterday at 54.25p. Merging with Ireland's Greencore will create a food group with sales of 1.7bn. The business will be domiciled in Ireland to save tax, but employ the bulk of its workforce in north of England, with about 5,000 in Yorkshire.

Essenta's new management have pledged to retain a UK operating centre in Yorkshire, although questions remain over its Leeds head office, which employs about 30 staff.

The tie-up, billed a "merger of equals", will takes directors from both companies. Northern's finance director Simon Herrick takes the new finance role at Essenta.

The deal is due to complete in March or April but Mr Barden will leave on November 30. He said he wanted to give the transition team a "free rein".

"They are now in place and the merger has been accepted by the markets," he said. "It's very important to step down and let Patrick and Simon put their imprint on the business. I don't want to get in their way.

"My view of life is that you look at everything in three-to-five year blocks. The share price has gone down but so has the industry. Where we are now is the highest (of our peers).

"I have steered it through as best I possibly could – and the best that most people would."

Last week Mr Coveney said Northern's chairman Tony Hobson and his counterpart at Greencore, Ned Sullivan, had been discussing a tie-up for about five years, and began pushing through the merger in July.

"There was always going to be consolidation," said Mr Barden. "So the strategy was not to be left out. We've been working very hard for a couple of years to make this happen."

Mr Herrick will run Northern as acting chief executive.

"The board is grateful to Stefan for his successful leadership of the business over the past four years, which has helped to facilitate the merger with Greencore," said Mr Hobson.

Mr Barden would have been entitled to a payoff of his salary of 496,150, plus benefits. However, a spokesman said he will receive a fraction of this because of his imminent start at Brakes.

Mr Barden will work at Brakes under group chief executive Philip Jansen.

The wholesaler was bought by US private equity group Bain Capital in 2007 for 1.3bn.

It has a UK turnover of about 1.7bn and 9,000 staff in 70 locations.

"I am delighted to welcome Stefan to Brakes," said Mr Jansen. "He is an experienced and talented leader who will bring a great deal to our business.

"Stefan's appointment will provide us with dedicated leadership of our important UK business and enable group chief operating officer Ian Goldsmith to focus on building our international operations."

The route to the summit

Stefan Barden graduated from the University of Leeds with a first in engineering. In 1984 he joined consumer goods giant Unilever as a graduate trainee, working in Italy and the UK.

In 1991 he left to do an MBA at Warwick Business School and joined consultants McKinsey & Company a year later.

In 1995 he joined frozen food business Iceland, and in 1997 joined Heinz, working his way up to become managing director of Heinz UK and Ireland, between 2003 to 2005.

Mr Barden joined Northern Foods in January 2006 to head its chilled division, and then its bakery business, before becoming chief executive in February 2007.