Britain's Premier Foods Plc said on Thursday it had agreed to sell its tea business, including its flagship Typhoo brand, to India's Apeejay Surrendra Group for 80 million pounds ($139.5 million) in cash.
Premier Foods, which also owns traditional English brands Branston Pickle, Gale's honey and Bird's custard, said the proceeds from the sale would be used to reduce debt.
"Our strategy is to drive growth through the active management of our brand portfolio focusing on those brands with leading market positions," Chief Executive Robert Schofield said in a statement. Typhoo is the UK's third biggest tea brand after Unilever's PG Tips and Tata Tea's Tetley.
In September Premier Foods, posted a near 10 percent rise in first-half operating profit to 42.8 million pounds as group sales fell 3.9 percent to 409 million pounds due to lower potato prices. Apeejay Surrendra Group, founded in 1910, has interests in tea, hospitality, retail, shipping, financial services and property.
Shares in Premier Foods were up 0.3 percent at 300 pence in early trade, valuing the firm at 743 million pounds.
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