LONDON Jan 27 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
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.