Heinz of the US has bought two of the UK's oldest sauce brands, agreeing yesterday to acquire HP Foods and Lea & Perrins from France's Danone for £470 million (€705 million), as the ketchup maker seeks to strengthen its struggling European business.
The purchase of HP Foods and Lea & Perrins, which Heinz claims will make it the "sauces leader" in the UK, follows a restructuring of its European operations.
Joe Jimenez, president and chief executive of Heinz Europe, said: "The acquisition is a perfect strategic fit for Heinz in Europe."
HP Foods has a history stretching back more than a century. HP Sauce (named after the Houses of Parliament) was developed from a home-made recipe around 1900 to settle a debt.
HP bought Lea & Perrins of Worcester - considered a more sophisticated sauce, made with ingredients from India, China and the Caribbean - in 1930. Danone bought the brands for £199 million in 1988.
The deal includes a licence for Heinz to sell Amoy Asian sauces and products in Europe. Combined, the brands have about $300 million (€247 million) in global sales.
The company reorganised its US operations in 2002, divesting non-core businesses and focusing on core brands. - (Financial Times Service)
