The sale is expected to complete by the end of July 2012.
This agreement is a part of the company's strategy to focus on its eight power brands, Hovis, Mr Kipling, Ambrosia, Sharwoods, Oxo, Loyd Grossman, Bisto and Batchelors, and divest selected, non-core businesses.
According to Premier Foods, the Sarson's and Haywards brands are the leaders in their respective categories of malt vinegar and pickles in vinegar while Dufrais is the number two brand in speciality vinegar.
The brands are predominantly manufactured at the Group's Middleton factory, near Manchester. All employees at the site are expected to transfer to Mizkan following an appropriate consultation process.
Premier Foods CEO Michael Clarke said this agreement represents another important step in the company's strategy to focus on Power Brands.
"Our vinegars and sour pickles business and employees will greatly benefit from being part of a global player focused on vinegar and liquid condiments," Clarke added.
Mizkan CEO Kazuhide Matazaemon Nakano VIII said the brands fit well with the company's global portfolio, are a strategic fit and provide a solid foundation for growth in the UK.
For the year ended 31 December 2011, the vinegar and sour pickles business had reported revenues of £34m and EBITDA of £6.2m. The gross assets of the business being sold as at 31 December 2011 were £31.7m. The group expects the impact of the transaction to be initially earnings dilutive.
