Premier Foods PLC (LON:PFD) has taken the planned sale of its Ambrosia custard brand off the menu after failing to find a bidder willing to match its asking price.
The company, which also makes Mr Kipling cakes and Bisto gravy granules, has been in talks with “a small group” of potential buyers since then-chief executive Gavin Darby put it on the chopping block back in November.
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Darby, under pressure from activist investor Oasis to restructure the business, said at the time that selling Ambrosia would be “the final piece of the jigsaw to put the company on a good footing”.
But the 62-year-old left the company a few weeks ago and Premier said today that it was pulling the sale after talks collapsed.
“The board has concluded that in the present business climate the process will not result in a satisfactory financial outcome. As a result, these discussions have now concluded.”
Carving out Ambrosia, which makes custards and rice puddings from a single factory in Devon, is seen as a relatively straightforward process.
But analysts have often noted that it would only be worth selling if Premier could get enough for it to pay down a sizeable chunk of its £500mln debts.
Premier shares fell 4.4% to 35.6p in early deals on Friday.