Shares in Premier Foods were up on the FTSE 250 in morning trading after announcing the sale of its meat-free business, which owns the Quorn and Cauldron brands.

The group said it was selling the business to Exponent Private Equity and Intermediate Capital Group for £205 million.

The meat-free business is expected to report sales of £128.8 million and EBITDA of £19.3 million in the full year to 31 December 2010.

By 11:15 shares in Premier Foods were up 2.46 per cent on the FTSE 250 to 22.90 pence per share.