Premier Foods plc has announced that it has agreed to sell its interest in Hovis Holdings Limited to the private equity firm Endless LLP.
The transaction, which closed and completed late on 5 November 2020, will see Premier Foods receive proceeds worth £37 million, which includes the repayment of outstanding loan notes and accrued interest.
This transaction will strengthen the company’s financial position, as it continues to improve its leverage profile.
The Gores Group LLC and Premier Foods have held a 49% minority interest in Hovis since April 2014.
Supply Chain Restructuring
Under Gores and Premier Foods' ownership, Hovis has undergone major supply chain restructuring.
Hovis, which now focuses on bread baking following the disposal of its milling business, is commercially well-positioned to grow under new ownership, Premier Foods added.
Earlier this week, Italy's Newlat Food said it did not intend to join in a competitive tender to acquire Hovis.