Premier Foods plans £1bn float

A BASKET of Britain's favourite grocery brands is set to come to the stock market as it emerged Typhoo tea-to-Branston pickle group Premier Foods is preparing for a flotation that, at more than £1bn, will make it London's biggest new issue so far this year.

The starting gun was sounded on a float as it emerged the company's Texan owners, the Hicks, Muse, Tate & Furst venture capital house, has appointed investment bank Merrill Lynch to look at bringing it to market.

Hicks, Muse has assembled a formidable portfolio of brands at Premier, which last year had sales of £890m and operating profits of £79m.

The original Premier Foods group based on Typhoo, Cadbury's hot chocolate and the Chivers and Hartley's jellies and jams brands was built up by Hillsdown Holdings.

After Hicks, Muse bought the business in 1999, it acquired Branston, Sarson's vinegar and Sun Pat peanut butter.

Premier has brought in new management heavy in publiccompany experience, including chief executive Robert Schofield, a former managing director of United Biscuits, and finance director Paul Thomas, previously of Bass the brewers.

Hicks Muse bought Weetabix for £640m before Christmas, but it is uncertain whether it will be part of the Premier float.

Northern Foods has sold its loss-making Eden Vale subsidiary producing fresh chilled desserts and yogurts for Marks & Spencer and Asda to rival Uniq, the former Unigate, for £16.5m.