Insider Media Limited

Birmingham-based 2 Sisters Food Group has bought a chilled food and bakery subsidiary of Premier Foods for £30m.

Premier Foods said its Brookes Avana business would have "a better opportunity to grow" with 2 Sisters, which is headed up by Harry Ramsden's tycoon Ranjit Boparan.

The sold businesses include RF Brookes chilled foods and Avana Bakeries.

St Albans-based Premier Foods said the disposal was part of its strategy to focus investment on its core brands which include Oxo, Hovis, Mr Kipling and Branston.

Michael Clarke, chief executive officer of Premier Foods, said: "The sale of Brookes Avana underlines our commitment to focus the business on growing a smaller number of brands.

"Brookes Avana will have a better opportunity to grow with 2 Sisters Food Group given their focus in the chilled food sector. I wish them every success in the future."

The sale includes the three Brookes Avana sites at Newport (RF Brookes and Avana Bakeries) and Leicester (RF Brookes). All employees are will transfer with the business.

Ranjit Singh, chief executive of 2 Sisters Food Group, said: "We are delighted to reach agreement on the proposed acquisition of Brookes Avana. The business has a strong track record in delivering high quality products for its customers and would provide a growth platform for 2 Sisters and increased product diversity to serve every eating occasion.

"This is an excellent strategic fit and, following completion, we will focus on delivering growth opportunities and enhancing the performance of the business."

For the year ended 31 December 2010, Brookes Avana reported a turnover of £203.6m and a trading loss of £100,000.

The deal, which is expected to complete in January, comes after 2 Sisters' parent company Boparan Holdings completed its £342m acquisition of Northern Foods.