Premier Foods has scooped up Campbell Soups in the UK and Ireland for £460m. The deal adds Oxo gravy to Premier's portfolio along with Homepride sauces and Batche-lors soups.
Premier plans to take Batchelors into wet soups and gravy, as well as powdered soups, and promote them as healthy eating products. Along with Batchelors, Oxo will receive the bulk of new investment as two key 'drive' brands. Cost savings from the deal are expected to be £28m annually.
Premier aims to boost business at Campbells' factories, currently running at only 45% of capacity against Premier's 68%. The target for both would be around 80%.