Premier slims down with Quorn sale

Exponent Private Equity and Intermediate Capital Group bought the meat-free division, which has three manufacturing sites in the UK and employs nearly 595 staff, ending months of speculation over the group's plans for the two brands.

Premier has been weighing up its options as it looks to alleviate a 1.4bn debt pile built up following an acquisition spree that included Hovis owner RHM and Campbell's Soup in UK and Ireland.

Premier employs 320 staff at Quorn in Stokesley, North Yorkshire, plus another 60 at Billingham in Stockton-on-Tees.

Chris Graham, founding partner at Exponent, said: "We are pleased to be acquiring Quorn and Cauldron which are strong and robust brands with a loyal customer base.

"With additional investment both in the UK and internationally we believe we can grow the business further.

Quorn and Cauldron fit within Exponent's portfolio - which includes The Trainline.com, Dreams and The Ambassador Theatre Group - Mr Graham added.

Robert Schofield, chief executive, Premier Foods, said: "We are pleased to have concluded this sale agreement. It makes a significant contribution to reducing our debt.

"Having also recently completed the restructuring of our swaps portfolio, this deal represents another step along the road to achieving a capital structure which we believe will be more attractive to investors.

"It will also enable the business to focus further on building our current portfolio of great British brands."

Reports had claimed food groups Nestle, Unilever, Danone and Campbell's were potential bidders for Quorn.