Iconic bakery brand Hovis has been acquired by UK private equity firm Endless for an undisclosed sum.
The 134-year-old brand has been owned by a joint venture between Premier Foods and investment firm the Gores Group since 2014.
Premier Foods said it will receive £37 million for its 49 per cent stake as part of the deal completed on 5 November.
The group said in a regulatory filing that the transaction will strengthen its financial position as it continues to improve its leverage profile.
Premier Foods added that Hovis is well positioned to grow under new ownership after undergoing major supply chain restructuring under the joint venture.
Endless said it will invest further in the brand to allow the Hovis team to make significant investment into the business infrastructure, growth of its branded range and other bakery products.
“Based on our extensive engagement with Endless over the past several months, it became clear that both parties share a commitment to customers and colleagues and for building on Hovis’ heritage by investing in growing both the brand and product range,” commented Nish Kankiwala, Hovis chief executive.
“The acquisition will help drive our strategy for growth by bringing both strategic and operational value to Hovis."
Based in High Wycombe, Hovis employs around 2,700 people and operates eight bakery sites, its own flour mill and a distribution network spanning the UK and Northern Ireland.
Francesco Santinon, partner at Endless, said: “Hovis is the instantly recognisable British bread brand with a strong and established heritage. We were extremely impressed by the management team and have great confidence in supporting and investing in its future as Hovis looks to achieve further expansion within the bakery category.”
Endless also have BBF, a leading supplier of ambient cake products to the UK’s major grocers, in its portfolio.
