Duerr’s considers purchase of Hartley’s

UK jam maker Duerr’s is looking to acquire Hartley’s, which has been put on sale by its owner Premier Foods as part of its strategy to lower debts and avoid a breach of its credit agreement.

Duerr’s managing director Mark Duerr said that the company is investigating opportunities relating to the sale of Hartley’s, which could complement its jam business. "If the business can align with our proud heritage, quality and history of innovation then naturally we would be interested, but it would be inappropriate to speculate on this without fully evaluating the business," Duerr added.

Hartley’s, which was founded in 1871 as a jam manufacturer, has expanded into jellies and desserts, replacing the company’s Rowntrees and Chivers brands. The business, which is headquartered in Histon, UK, has estimated annual revenues of £200m and is valued between £200m and £250m.

Along with Hartley’s, Premier Foods is also planning to sell its Hayward pickles unit, which is valued at around £35m and produces a range of pickles including onions, silverskin onions, beetroot, red cabbage, piccalilli and gherkins.

In October last year, the company announced that it will focus on investing in its eight ‘power brands’ Hovis, Mr Kipling, Ambrosia, Sharwoods, Oxo, Loyd Grossman, Bisto and Batchelors, and divest selected businesses. Premier Foods is struggling to pay off its £850m debt and is holding negotiations with its creditors, which in November gave a grace period on covenant tests until 31 March.

In December, the company agreed to sell its lossmaking Brookes Avana business to 2 Sisters Food for £30m, as well as four of its Irish food brands to the Boyne Valley for a cash consideration of €41.4m.

Caption: Hartley’s has estimated annual revenues of £200m and is valued between £200m and £250m. Credit: Premier Foods.