UK Manufacturing Proposals

Premier Foods plc 19 January 2007 PREMIER FOODS PLC ('PREMIER') Proposals to restructure UK manufacturing facilities and acquisition of Chivers Ireland Premier, one of the leading suppliers of grocery products in the UK, has announced consultation on the proposed closure of its factories in King's Lynn (Norfolk) and Ashford (Kent) and the expansion of three other UK food production sites. The proposal is for the King's Lynn factory to close by December 2007 and the Ashford factory to close by May 2008. Plans are expected to be finalised early in the Spring, with implementation taking place throughout 2007 and beyond. The savings and costs of the restructuring are in line with those anticipated at the time of the acquisition of Campbell's UK. Premier's other manufacturing sites will continue to operate as usual. In addition, Premier announces that it has agreed to acquire Chivers Ireland Limited from its management. Chivers is a leading supplier of preserves to Ireland's retail grocery and foodservice markets and currently also operates as one of Premier's key distributors in Ireland. This acquisition will strengthen Premier's position as a major player in the Irish food market. The gross assets of the business as at 31 December 2005 were €24.5m. Robert Schofield, Premier Foods plc CEO, commented: 'These restructuring proposals are very much about maximising our competitiveness in order to grow our business and our brands. We are committed to enhancing our manufacturing efficiency so that we can remain competitive and to providing substantial marketing investment to support our brands. 'Closing factories is not a decision we take lightly and we appreciate greatly the commitment of our Ashford and King's Lynn factory employees. We are determined to provide support for those affected and remain hopeful that in the event of us proceeding as proposed, many of those employees will remain in the business and transfer to one of the new opportunities being created.' Enquiries: Paul Thomas, Finance Director Robert Lawson, Director of Mergers & Acquisitions and Investor Relations Premier Foods plc Tel: 01727 815 850 Michael Berkeley Justin Griffiths Citigate Dewe Rogerson Tel: 020 7638 9571 Notes to Editors Premier Foods plc is a leading UK manufacturer and marketer of grocery products. Premier manufactures and markets grocery products for the retail grocery and out of home channels in two principal product segments: • convenience foods, pickles, sauces and meat free; and • spreads, desserts and beverages. Premier also operates a potato packing and marketing business in the United Kingdom, supplying the retail grocery, out of home and food manufacturing channels. Premier's branded products include Batchelor's soups, noodles, rice, pasta and vegetables, Quorn meat alternatives, Ambrosia custard and milk puddings, Oxo stocks and gravies, Bird's and Angel Delight desserts, Branston pickles, baked beans and pasta, Hartley's preserves and desserts, Homepride cooking sauces, Gale's honey and lemon curd, Crosse & Blackwell convenience foods, Sun-Pat peanut butter, Sarsons vinegar, Fray Bentos meat pies, Haywards pickles, Smash instant mashed potato, Marvel powdered milk creamer and Waistline salad dressings, soups and cooking sauces. In addition, the Company produces Loyd Grossman cooking sauces and soups under licence. Premier also produces a range of retailer brand products, principally for the major multiple retailers. This information is provided by RNS The company news service from the London Stock Exchange
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