LONDON: Popular food brands Fray Bentos, Batchelors and Oxo will soon be owned by Premier Foods Plc. The brands will be sold as part of a deal where Premier Foods buys soup maker Campbell’s British and Irish operations for about £460m ($848m).

Campbell Soup Co. yesterday agreed to sell its UK and Ireland businesses following lower than expected performance from these regions last year. These units account for a sizeable 29 percent of the group’s global revenues. These operations are “highly fragmented�? and their declining profit growth weighed down on group performance leading to a sell decision.

Campbell, a household name worldwide, said it wanted to strengthen businesses in North America and other international markets. The sale of these brands would leverage Premier’s presence in the foods markets in these regions. Chief executive Robert Schofield said the acquisition fits Premier “like a glove�? and would result in annual costs savings of £28m in the first three years.

Premier plans to launch new products as extensions of these brands, especially ‘Oxo’ which is associated with “wholesome home-cooked food�?, a brand feature that promises great scope to market new products in the category. Oxo stock cubes – packed concentrated meat extract have been a household name all these years.

Premier said the acquisition would be funded from the proceeds of a rights issue (sale of newly issued shares) with a minimum subscription price of 160 pence a share. The company expects to raise about £450m from the issue which will be underwritten by Merrill Lynch International and Hoare Govatt.