Premier Foods has accepted a €50m offer for French patisserie business Martine Spécialités.
Premier confirmed today that Martine had been the subject of an approach by French private equity group Cerea Capital and has begun a consultation with employees over a possible sale.
Martine employs 385 people and posted pre-tax profits of £4.4m for the nine months to 31 December against sales of £34.4m
Premier acquired the business in March 2007 as part of its £1.2bn takeover of RHM.
News of the sale comes with Premier executives battling to reduce the group's £1.6bn debt burden. Last week the group announced it had agreed to another disposal of French assets, with its Sofrapain and Le Pain Croustillant (LPC) arms also set to change hands.
"The proposed disposals of LPC, Sofrapain and Martine are consistent with Premier's strategic focus on its business in the UK and Republic of Ireland and will assist in reducing group debt, with anticipated total proceeds of approximately £50m," said Premier chief executive Robert Schofield.