THE UK’s biggest food producer confirmed it was considering selling its meat-free business, which has its production hub in North Yorkshire.

Shares in Premier Foods surged yesterday after confirmation it was considering a sale of meat substitute Quorn.

The brand’s production hub is at Stokesley, North Yorkshire, where 320 workers are employed.

There are also 62 staff working on the brand at a separate facility in Billingham.

Quorn, purchased for £172m from Marlow Foods in 2005, is said to be valued at between £200m and £250m.

It is understood to be one of a raft of brands potentially up for sale as part of a debt reduction plan.

In a statement the firm said: “The board remains open minded about disposals, provided they deliver shareholder value and accelerate the reduction of average net debt.

“As part of this, the group confirms it has received approaches that may or may not lead to a sale of its meat-free business, including Quorn.

“There can be no guarantee that such a transaction will take place. Further announcements will be made as and when appropriate.”

Premier Foods, which also has Hovis and Mr Kipling in its stable, is under pressure to reduce a £1.4bn debt mountain.

Food firms Unilever and Nestle are seen as potential buyers for the Quorn brand.

Martin Deboo, analyst at Investec Securities, said: ‘‘This is probably the one business within Premier that will attract the likes of Unilever and Nestle and their attendant deep pockets and ability to transact quickly.’’ Shares, which have remained near a record low due to the company’s debt burden, were 15 per cent higher yesterday.

Premier repeated its open minded stance to disposals, provided they offer shareholder value and help slash its burgeoning debt.

The group’s borrowings have swollen after a takeover spree in recent years, including the Hovis bakery company RHM in 2007 for £1.2bn and the UK arm of Campbell’s Soup in 2006 for about £450m.

Premier received an approach for the Mr Kipling cake business last year and there has been speculation its Hovis bread brand, with a facility employing 81 in Newcastle, could go up for sale.

The group started struggling under debts during the credit crunch in 2008 and was forced to complete a £400m share placing to raise cash early last year.

The first Quorn product was launched in 1985 using a specially-developed proteinbased ingredient called mycoprotein, and it has since become a popular meat substitute for vegetarians.