Premier Foods PLC sells Hovis stake in multimillion-pound deal
The owner of the Mr Kipling cake brand is expected to receive £37mln from the sale of its interest to private equity firm Endless LLP
Premier Foods PLC () has agreed to sell its stake in bread maker Hovis to private equity firm Endless LLP in a multimillion pound deal.
The FTSE 250 firm, which also owns the Mr Kipling and Bird’s Custard brands, said it has agreed to sell its 49% minority interest to Endless for proceeds of £37mln, in a move it said will strengthen its financial position as it looks to improve its leverage profile.
READ: Premier Foods could cash in from Hovis sale, say reports
Meanwhile, US private equity firm The Gores Group, which owns the remaining 51% of Hovis, has also agreed to sell its stake to Endless.
Premier Foods initially owned all of Hovis after purchasing the 134-year old bakery brand in 2007, however, it sold the controlling stake to Gores Group in 2014 to form an Anglo-American joint venture.
The financial details of the overall transaction today were not disclosed.
Shares in Premier Foods rose 0.4% to 104p in early deals on Friday.
Read More: Premier Foods PLC sells Hovis stake in multimillion-pound deal