McCormick, the US spice and seasoning firm, has announced that it no longer intends making an offer to acquire the UK-based food manufacturer Premier Foods.
Premier Foods had reportedly rebuffed three approaches from the American firm before announcing last week that it had entered “constructive” talks regarding a possible takeover. The latest offer put forward by McCormick was said to have amounted to 65 pence a share in cash, or a total valuation of £1.5 billion ($2.2 billion).
“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”, McCormick said in a statement on its website.
“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”, the company added. “Accordingly, McCormick has withdrawn its proposal to acquire Premier Foods”.
Source: McCormick / Bloomberg