Private equity firms Exponent Private Equity and Intermediate Capital Group have agreed to buy the meat-free business of Premier Foods for £205 million.

The two UK-headquartered firms will take control of Premier brands Quorn, which makes ready-to-eat meals of meat-substitute mycoprotein, and Cauldron, which sells tofu, falafel and vegetarian sausages, following a deal that is subject to bank and shareholder consent. The sale is expected to be completed in early March.

According to a Premier statement, the sale proceeds will pay down bank debt and the business will focus more on its core lines, including the bread brand Hovis.

Premier chief executive Robert Schofield remarks: ‘Having also recently completed the restructuring of our swaps portfolio, this deal represents another step along the road to achieving a capital structure which we believe will be more attractive to investors.

‘It will also enable the business to focus further on building our current portfolio of great British brands.’