Hovis In Talks To Sell To Private Equity Firm

Hovis In Talks To Sell To Private Equity Firm

UK-based private equity firm Endless is reportedly in ‘advanced talks’ with the owners of bakers Hovis to purchase the business, just as Italian food manufacturer Newlat has requested exclusivity in the talks to stay in the running.

According to Sky News, Leeds-based Endless are near to closing a deal for Hovis, which could be confirmed soon, although, at time of press, an agreement had not been finalised.

US-based private equity investment firm The Gores Group is a majority owner of Hovis, and UK-based food manufacturer Premier Foods holds a minority interest, having sold most of its shares to Gores in 2014.

However, Newlat, which made an offer for the baker in October, announced on 4 November that it ‘does not intend to proceed further’ in what it has described as a ‘competitive tender’ unless it is granted exclusivity in the discussions.

In response to Newlat’s request, issued via a stock-market filing, Premier Foods, who also own Batchelor’s soups, countered with its own statement to the London stock exchange yesterday.

“Premier Foods notes both the media speculation and a statement from Newlat Food S.p.A today, 4 November 2020, concerning its 49 per cent interest in Hovis Holdings Limited,” the statement said.

“The group confirms a sale process for a potential transaction in respect of Hovis is ongoing. However, there can be no certainty that any transaction will conclude. The group will provide an update in due course as appropriate.”

Sky News has reported that a deal for Hovis could fetch £100 million, based on the suspected price tag the owners have been asking for. However, Hovis and Endless have declined to comment on recent developments.

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By | 2020-11-18T09:07:35+00:00 November 18th, 2020|Blog|Comments Off on Hovis In Talks To Sell To Private Equity Firm

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