Hovis to get €250m investment from joint venture with US group
Premier Foods, which has owned Hovis since Mar 2007, hopes the creation of a joint venture with private equity firm Gores Group will help to reinvigorate the Hovis business after a long run of disappointing sales.
Los Angeles-based Gores is paying €35m for a 51% controlling stake in the Hovis and Mothers Pride business, which has 4,000 staff at 10 bakeries and five flour mills.
The deal is expected to unlock €250m in investment over five years, as well as enable Premier Foods to focus on other brands such as Mr Kipling and Bisto.
Hovis was the first to advertise on British television in 1956 and went on to launch one of the most famous TV ads of all time in 1973 with the “Boy on the bike” directed by Ridley Scott and featuring the music from Dvorak’s Symphony No 9. The business was previously owned by Rank Hovis.
