LONDON: Premier Foods plc has agreed to the disposal of its interest in Hovis Holdings Limited to Endless LLP, a news release said.
Alongside its joint venture partner, The Gores Group LLC, the Group 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; proceeds of £37m due to the Group include the repayment of outstanding loan notes and accrued interest.
The Group’s 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.
Premier Foods plc is a British food manufacturer headquartered in St Albans, Hertfordshire. The group owns many well-known brands, including Mr Kipling, Ambrosia, Bird’s Custard, Angel Delight, Homepride cooking sauces, Sharwood’s, Loyd Grossman sauces, Oxo, Bisto, Batchelors and Plantastic.