Premier Foods, owner of the Bisto gravy brand, has confirmed it is seeking investment to help cut its debt.

Britain’s biggest food manufacturer, Premier Foods, has today (15 December) confirmed it is in talks with investors and certain parties to raise a cash injection to help cut its debt.

The company, best known for producing Bisto gravy, Mr Kipling Cakes and Hovis bread, said it has not yet made a decision on the size or structure of the investment, but will give existing shareholders’ rights full consideration before a decision is made.

The company said in a statement: “As previously announced, Premier is reviewing a range of options to accelerate the reduction of Group debt in order to establish a more appropriate long-term capital structure. 
 
“Premier confirms that, as part of this review, it has held preliminary discussions with a number of its investors and certain other parties regarding a possible investment in Premier. These discussions remain at an early stage.”

Premier’s shares have dropped almost 90% in 2008 amid concerns over its inability to repay £1.8 billion in debt.

According to the Financial Times, Premier is looking to raise between £200 million and £300 million from existing institutional investors, external investors and private equity groups.

The Sunday Telegraph, meanwhile, has reported it is hoping to generate £700m pounds and is currently in talks with private equity firms Bain Capital, Blackstone and Permira.
 
Premier will provide an update on trading for 2008 on 13 January 2009. 

For more information, visit: www.premierfoods.co.uk

By Natasha Piscitelli