McCormick abandons plan to buy Premier Foods
Spice manufacturer McCormick & Company is ditching its plan to purchase the UK’s Premier Foods plc—known for its Mr. Kipling cakes and Bistro gravy among other brands—after negotiations between the two companies fizzled out.
In March, Premier Foods rejected two unsolicited takeover bids from McCormick saying the US company’s proposals undervalued its growth prospects. McCormick announced Wednesday it has no intention of making another offer to Premier Foods. Under British law, McCormick had until April 20 to make another offer for the company or announce its intentions to discontinue pursuit.
“McCormick has completed its due diligence review of Premier Foods, which was conducted with the management of Premier Foods in an open and collaborative spirit,” the company announced in a statement. “McCormick has, after careful consideration, concluded that it would not be able to propose a price that would be recommended by the board of Premier Foods while also delivering appropriate returns for McCormick shareholders.”