When the capital markets are roaring, investment banking tales of derring-do are about initial public offerings (IPOs) or hard-fought takeovers. In times like these, they are more likely to be about restructuring. As sole restructuring advisor on the recent capital transformation of Premier Foods, Goldman Sachs showed that this type of deal also represents victory over considerable odds.
For the past decade, Premier has been building an extraordinary portfolio of food brands. Its business model is to sell "great British brands" only to supermarkets in the UK. These brands include Hovis, Bisto, Mr Kipling, Angel Delight, Bird's, Branston, Oxo and a host of others. The trouble was that Premier acquired the first three by buying RHM in 2007, and the debt it raised to do so has been a millstone around its neck.
