January 27, 2014 / 7:15 AM / 4 years ago

Premier Foods, Gores Group to jointly operate Hovis

LONDON, Jan 27 (Reuters) - Britain's Premier Foods has signed an agreement with U.S. investment firm The Gores Group to jointly operate its struggling bread division, in a deal which values the unit at 87.5 million pounds ($144.40 million).

The Gores Group will pay 30 million pounds for a 51 percent stake in the bread business, which will operate under the Hovis name. The transaction will give Premier Foods a short-term cash inflow of 28 million pounds which it intends to invest in its grocery business, it said on Monday.

The two parties have also agreed to invest a combined 45 million pounds in Hovis which will enable a 200 million pound five-year investment programme for the bread business.

Premier Foods also said its trading profit for the year to the end of December was in line with expectations.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below