Heinz set to win battle for HP
Premier Foods and Associated British Foods were today reported to have lost out to US giant Heinz in the battle for the maker of HP sauces.
Both firms are thought to have expressed an interest in buying HP Foods, which also makes sauces under the Lea & Perrins brand, from French rival Danone.
According to the Financial Mail on Sunday, they were eclipsed by an offer of £470m (€701m) from Heinz in an auction run by investment bank Lazard.
Bidding has taken place at a busy time for the food production industry, with Premier snapping up the maker of meat alternative Quorn from private equity firm Montagu earlier this month.
Quorn will be Premier’s largest brand, joining labels such as Ambrosia custard, Branston Pickle, HP sauce and Typhoo Tea.
AB Foods owns brands such as Ovaltine and Twinings but has focused on expanding its discount clothing chain Primark in recent months.
The spotlight also fell on the sector last week when RHM – the maker of Mr Kipling cakes and Paxo stuffing – announced plans to float on the London market.
According to the report, Heinz is expected to maintain investment in advertising and new HP products following its recent decision to focus on ketchup, condiments and sauces.
Danone bought HP Foods from industrial conglomerate Hanson in 1988.
