Premier Foods Disposes of Hovis Joint Venture
Premier Foods has agreed to the disposal of its interest in Hovis Holdings to Endless LLP. Alongside its joint venture partner, The Gores Group, Premier Foods has held a 49% minority interest in Hovis since April 2014.
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.
The transaction closed and completed late on 5 November 2020. The proceeds of £37 million due to Premier Foods include the repayment of outstanding loan notes and accrued interest.
Premier Foods’ investment in Hovis was fully written down in 2016. This transaction strengthens the group’s financial position as it continues to improve its leverage profile.
