Premier Foods has announced that the MD of Nissin is to become a non-executive director on its board following an agreement to sell 19.9% of the company to the Japanese firm.
Gavin Darby, chief executive of Premier Foods, has come under fire from shareholders who are angry that a proposed takeover from US food giant McCormick never materialised. They argue that Mr Darby should have accepted McCormick’s indicative offers, which valued the company at a 90% premium to its share price. Instead of selling to McCormick, Premier entered a tie-up with Nissin, which has a large presence in the US and China.
The Nissin deal was conditional on any other agreement not proceeding.
A key strategic element to the collaboration may include Nissin’s experience in the cup noodle market, which the Japanese group invented and which are seen as a good fit for Premier’s own Batchelor’s noodle brand.
