Hovis to get €250m investment from joint venture with US group

Struggling British bread business Hovis is to get €250m of investment as part of a deal that will hand a major slice of the operation to an American firm.

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.