McCormick made the approach on 12th February 2016 offering 52 pence in cash per Premier share and was subsequently rejected by the company, an updated approach of 60 pence was then offered and also rejected.
David Beever, chairman of Premier Foods, said: “McCormick’s Proposal represents an attempt to capture the upside value embedded in Premier’s business that rightfully belongs to Premier’s shareholders. The Proposal fails to recognise the value of Premier’s performance to date and prospects for the future, including the strategic plans we have to accelerate growth.
“McCormick's Proposal significantly undervalues the business and the Board has unanimously decided to reject it.”
Premier Foods owns many UK brands including Mr Kipling, Oxo, Bisto and Homepride.
Premier Foods also confirmed that Nissin Food Holdings has unconditionally agreed to acquire a 17.27% shareholding in Premier from an existing shareholder.
Beever added: “We welcome Nissin as a new long-term shareholder in our business. By gaining a strategic investor who understands and supports our growth ambitions, we have an exceptional opportunity to deliver shareholder value.
“Based on the conditional cooperation agreement we announced yesterday, we very much look forward to working with Nissin to develop ways our two businesses can co-operate to drive growth.”