€150m deal brewing for Typhoo tea

Typhoo tea could be set to change hands for up to £100m (€150m) after being put up for sale by its owner, a report said today.

Premier Foods was said to have appointed bankers to handle the disposal after it received a number of approaches from potential buyers.

The company, whose other brands include Ambrosia Custard and Branston Pickle, wants to raise cash to buy typically English brands, according to the Financial Mail on Sunday.

It is thought to have its eye on between six and eight products – including Unilever’s Marmite, although that is not officially up for sale.

Typhoo was launched in 1903 by Birmingham grocer John Summer and is now the third-biggest brand in the UK tea market after PG Tips and Tetley.

An estimated 2.9 million cups of the tea are made each year in the UK, with Premier selling 23 million packets annually.

As well as its traditional and decaffeinated tea bags, the Typhoo range includes green and white varieties and a fruit selection.

The report comes three weeks after Premier bought the maker of meat alternative Quorn for £172m (€259m).

St Albans-based Premier floated on the stock market in July with a value of £527m (€794m) and since then had also acquired Bird’s Custard and Angel Delight from US giant Kraft Foods.

Premier’s other brands include Sun-Pat peanut butter, Gale’s honey and Waistline salad dressings and soups.

The group is said to have appointed Icelandic bank Islandsbanki to handle the sale.