The bread brand Hovis is sold to Endless for a private amount.
After the talk, Endless bought the brand after making a statement that Newlat Food had withdrawn from the bidding war.
Owned by Premier Foods (LON: PFD) and US investment company Gores Group, Hovis is a 134-year-old company employing 2,800 people across the UK. As consumers stockpiled, sales at the brands skyrocketed on the lockdown.
The value of the transaction has not been revealed, but Premier Foods said it will receive £37 million.
Equity company Endless says it plans to invest heavily in the Hovis brand to achieve its growth plan.
“We are pleased to announce that we are committed to providing a range of services and services to helping people with a range of services,” said Nish Kankiwala, CEO of Hovis. “Based on our extensive engagement with Endless over the past few months, it has become clear that both parties will share their commitment with customers and colleagues and build on Hovis’ legacy by investing in both the brand and product range.
“This shared vision will make Endless the best shareholder in supporting our ambitious plans.”
Mark Lynch, a partner at Corporate Finance House at Oghma Partners, commented on the deal. The incremental performance of Assets Karro and Bright Blue was an excellent example of this. So they are, for the time being, the logical owners of Hovis.
“They may try to fuse their business with the cake business. They should be synergistic with their cake business, their headquarters, their back office, their purchases and in some cases sales and customers. Also, bigger businesses could possibly make larger entities a candidate for IPOs. As medium-term Hovis continues to compete with two competitors funded by Warburtons and Allied, the challenge is to preserve the cost savings generated while improving their competitive positions.”
Premier Foods stock (LON: PFD) rose 1.75% on Friday morning (0916GMT).
